Category: + Fairness

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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Help Wanted, Marketing to Prospective Employees

7/31/2021

6 Comments

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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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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A Promotion Unlike Any Other

4/23/2021

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

Fans of The Office know that whenever Michael Scott attended another person’s party, wedding, or baby’s baptism, he would inevitably steal the spotlight, making the event about him. That kind of social sabotage makes for great TV comedy, but does a recent impromptu endorsement on golf’s greatest green signal that real life self-promotion is off the fairway?

The recent Masters Tournament seemed like a success, including that it crowned its first Asian-born champion, Hideki Matsuyama of Japan. However, “a tradition unlike any other” also showcased some cringe-worthy commercialism that led to the son of an all-time golf great losing permanent access to Augusta.

Perpetuating the Tournament's prestige, Masters’ organizers invited three of golf’s living legends to serve as honorary starters: nine-time major champion Gary Player, 18-time major champion Jack Nicklaus, and Lee Elder, the first African American to play in the Masters. It was at that ceremonial tee shot when the uninvited endorsement occurred:

“While Elder was receiving the accolades of Augusta National and surrounding patrons, Wayne Player, serving as his father's caddie, stood behind Elder clearly holding a sleeve of OnCore golf balls in such a way as to give the logo maximum visibility.”

Wayne Player has a relationship with OnCore Golf that includes serving as Tour Commissioner of the Player Amateur Tour, for which the golf ball brand is the title sponsor.

Social media quickly condemned Wayne Player’s “guerilla marketing,” calling the tactic “an embarrassment” and “undignified,” and suggesting he hijacked a special moment to “sneak in a free ad for golf balls.” Masters organizers apparently didn’t like the ambush advertising either: They’ve reportedly banned Wayne Player from the Tournament for life.

Those are harsh criticisms and consequences, especially given that considerable commercialism already surrounds the Professional Golfers’ Association of America (PGA) and the Masters.

The PGA’s Partners’ webpage reads like a Who’s Who List of corporate sponsors. “Official Partners” include the likes of AIG, Charles Schwab, Cadillac, John Deere, KitchenAid, KPMG, and Rolex. Then, there’s a whole other list of “Golf Retirement Plus Partners.” In total, 54 companies can claim they support the PGA.

For its part, the Masters Tournament’s website contains logos and links for its three marquee sponsors, AT&T, IBM, and Mercedes, who reportedly treat invited guests to an incredibly indulgent tournament experience, all charged to their corporate accounts.

What may be even more noteworthy is that the golf balls Wayne Player held were far from the only promotion present at the ceremonial tee shot. Gary Player wore a PXG hat, whose golf clubs he endorses, and a Black Knight shirt—his own signature brand. Similarly, Nicklaus came outfitted in a bright yellow sweater and matching hat, both bearing his Golden Bear brand. Elder also wore branded apparel: a PNG hat and a TravisMathew shirt—the latter is part of a formal partnership with Elder that the company announced just days before the Masters.

Given all of the corporate/self-promotion already present at the starting tee, what was wrong with Player strategically displaying one small sleeve of golf balls?

There are two main reasons Player’s product placement was ill-advised:

It was unnatural: It’s typical for golfers and others to will wear branded apparel on golf courses and elsewhere. It’s strange, however, to see someone hold steadily a sleeve of golf balls precisely so its logo appears prominently in camera shots. That’s why when product placement is done well in movies and TV shows, the products don’t draw attention to themselves; rather, viewers simply see them as part of the scene, if they notice them at all.
It was uninvited: The very unique Masters moment belonged to Gary Player, to Nicklaus, and especially to Elder. No person or thing should have stolen the spotlight from them, at least not without the Masters’ express permission. Ultimately, Wayne Player pulled a Michael Scott, showing little social awareness and, instead, surmising that the situation should be about him, not just the others.

So, the next time you’re a caddie at the Masters . . . of course, that’s a situation most of us will never experience, which makes it even more tempting to point a finger at Wayne Player, shake our heads, and wonder how he could act so insensitively. The problem, though, is that the proliferation of social media has made it exceedingly easy for any individual or organization to do the same sort of thing and steal others’ spotlights.

On a corporate level, such commandeering might take the form of a company donating $10,000 to a worthy social cause, then spending $100K to brag about its kind-hearted contribution in TV commercials, print ads, and other media.

Individuals also are not immune. We should be especially careful not to steal the spotlight with one upmanship. For instance, when a friend or colleague shares a special accomplishment on social media, we shouldn’t ‘congratulate’ them with a reply like, “I’m so happy for you. I remember when I completed my first 5K three years ago. Now I’m getting ready to run my fourth marathon.”

A few years ago, the American Marketing Association published a piece I wrote about the “Three C’s of personal branding.” In the article I argued that communication, which is what many people solely associate with branding, should only be the “icing on the cake.” A strong personal brand, or corporate brand, must first include a foundation of “cake”: character and competencies.

When we steal another’s spotlight and try to make their moment ours, we not only misplace our personal marketing communication, we reveal the serious character flaw of callous self-absorption, which is very destructive to any brand.

No self-promotion should come at others’ expense. In fact, the best self-promotion actually benefits others.

It’s easy to argue that Wayne Player’s golf ball product placement at the Masters was a bad idea. It’s also easy for any of us to succumb to similar temptations in everyday situations and make another’s moment our own. Pulling a Wayne Player, or a Michael Scott, makes any of us guilty of “Mindless Marketing.”

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Is It Right to Sell Others Short?

4/10/2021

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

You’re a basketball player whose team just won the NCAA Division I national championship! You run courtside to celebrate with family but your mother is visibly upset. “Mom, what’s the matter? “I’m sorry,” she stammers. “It’s just that . . . I bet against you.”

No athlete, or anyone, likes to be picked to lose. However, life is full of potential successes and failures that people need to predict. For some, those predictions offer significant money-making opportunities. But, is it right to earn a living betting against others?

As for many, the practice of short selling stocks burst onto my radar screen when GameStop’s shares took their rollercoaster ride several weeks ago. With more than a casual interest, I followed the ensuing events, including Robinhood CEO Vlad Tenev’s testimony before Congress. Along the way, I gained a better grasp of what short selling is, but ever since, I’ve been wondering whether anyone should be doing it.

In case you’ve forgotten how short selling works: Investor A borrows from a broker 100 shares of XYZ at $100 per share and sells the stock to Investor B at the same prevailing market price, or $10,000 total. Over the next week, XYZ’s stock price drops to $75. Investor A then buys 100 shares of XYZ for $7,500 and returns them to the broker, pocketing $2,500 in the process, less any interest and commissions the broker has charged.

The Securities and Exchange Commission (SEC) has made short selling legal. However, even with this regulatory approval, the practice should raise at least two red flags, or moral concerns, that lead one to ask: Is short selling ethical?

Before addressing the two concerns, I imagine some may be wondering what short selling has to do with marketing—the other half of this blog’s two-pronged focus. Short selling is marketing in that many stockbrokers, including very well-known ones like Interactive Brokers, TD Ameritrade, and Charles Schwab, market short selling among their investment services, or ‘products.’

For instance, Interactive Brokers’ website contains a Shortable Instruments (SLB) Search tool: “a fully electronic, self-service utility that lets clients search for availability of shortable securities from within [the firm’s] Client Portal account management platform.” The relative ease with which an investor can sell short makes its moral implications all-the-more important.

First Red Flag

‘Selling something that one doesn’t own’ was the short selling issue that initially gave me pause. Peddling another’s property certainly appears problematic, until one begins to consider the many ways in which such leveraged transactions regularly occur: from apartment subleases, to bank loans, to consignment clothing. Individuals and organizations often sell others’ property on consignment.

Of course, just because consignment occurs doesn’t mean it should. Still, the fact that all parties involved 1) willingly participate and 2) typically benefit are good signs that most of these activities are above-board.

Second Red Flag

The prior examples differ from short selling, however, in the second of the two ways: While the participants in apartment subleasing, etc., generally rise and fall together financially, a short seller’s success comes courtesy of two others’ failures, namely 1) those of the company whose stock the short seller has borrowed and 2) the person who buys the stock from the short seller. The short seller makes money when the other two parties lose theirs.

In contrast, consider again the clothing consignment example: If I take an unwanted suit to a consignment shop, both the consignor and I will want a high price when the suit is sold. Conceivably, the suit’s maker also would like its aftermarket products purchased for higher prices because such resale value reflects favorably on the brand, not unlike the way higher vehicle resale prices benefit automobile manufacturers’ brands.

On the other hand, the suit’s buyer would like to pay a lower price, but even he really doesn’t want the price to be too low, since perceptions of the brand are tied, at least in part, to the price that he and others are willing to pay for the suit. Most importantly, each time he wears the suit, he extracts value from it.

The suit is this example is analogous to the stock. Whereas everyone ‘invested’ in the suit seems to want it to retain its value, investors who short stocks clearly want the value of those securities to decline. Short sellers are betting against the very companies whose financial instruments they have borrowed and sold, as well as the individuals on the receiving end of those stocks.

The zero-sum game, or winner-loser outcome, that underlies short selling is certainly atypical of most economic exchanges, but it’s not without precedent. Casinos win when their customers lose, as do many “rent-to-owe” retailers like Rent-A-Center and Aaron's. Any kind of predatory lender falls under the same unseemly umbrella, including certain credit card companies that don’t make money unless people fail to pay off their account balances and become locked into an endless cycle of exorbitant monthly interest payments.

However, many argue that short selling does not do anything nearly so destructive. In fact, some contend that the practice produces several important economic benefits, the primary one being liquidity, “the efficiency or ease with which an asset or security can be converted into ready cash . . . . ”

In my research, I found market liquidity to be the factor cited first and most often in the defense of short selling. However, at least one financial markets expert suggests that advantage is exaggerated.

Dwayne Safer is a chartered financial analyst (CFA) whose career has included significant roles in investment banking, corporate finance, and strategy. For the last five years, he’s been a professor of finance and my colleague at Messiah University. When asked about short selling and market liquidity, he offers a contrarian analysis: “the liquidity offered by short selling for most stocks is negligible.”

Safer supports his suggestion by sharing a Bloomberg Terminal screenshot (below) that shows that shares sold short represent only about 3.5% of trading volume on the New York Stock Exchange (NYSE). He also cites an example from the financial crisis in late 2008, when the SEC temporarily banned the short selling of financial stocks “without any noticeable degradation of liquidity in those stocks.”

Safer recognizes that there may be some “modest liquidity benefit” for certain heavily shorted stocks; for instance, at the time we spoke, 21% of Dick’s Sporting Goods’ shares available for trading were short. Still, he affirms: “If shorting wasn’t permissible, liquidity would be brought into the market by the broker-dealers and market makers who would stand ready to buy and sell shares of a given company to generate trading revenue.”

So, does the elimination of liquidity as a main benefit of short selling leave no morally tenable ground on which short sellers can stand? Not necessarily.

Safer continues by saying that although he doesn’t agree with conventional wisdom that short selling adds significant market liquidity, he does believe short selling offers other meaningful market benefits:

It provides the ability to hedge/protect a portfolio from downward movement in stock prices, mitigating portfolio volatility.
The in-depth research short sellers often conduct can expose fraudulent companies. For example, short selling hedge funds warned about the frauds at Enron, Tyco, Fannie Mae and more recently Luckin Coffee and Nikola.
Shorting helps prevent overinflated securities prices that waste valuable capital and harm investors, as occurred in the dot-com bust in 2001. Former SEC chairman Christopher Cox once stated, "We need the shorts in the market for balance so we don't have bubbles.”

Before beginning to write this piece, I was unaware of these important benefits of short selling. Still, how do we reconcile such consequences with the moral principle of respect, or as my second red flag/concern described: not betting against another person.

That moral principle certainly has merit, but my earlier discussion probably represented too narrow a view of short selling. Safer’s observations have helped me see that there are other factors to consider and parties to take into account, e.g., other investors, firms’ customers and employees, and the economy as a whole.

I’m also helped by remembering a story I heard just a few days ago: A guest speaker in our capstone marketing course mentioned that a former client of his used to tell him, “I pray for my competitors.” This very successful business owner was not being sarcastic—he truly wanted his competitors to succeed both because he genuinely cared about them and because he understood that “a rising tide lifts all boats.”

Returning to the basketball metaphor that began this piece, no serious athlete wants to be on the winning side of a forfeit. Basketball players need competitors, who also happen to have fans rooting for them.

However, choosing loyalties isn’t unique to picking stocks or selecting sports teams. Each day we make dozens of similar decisions when choosing what clothes to buy and where to order takeout. Each selection of a company is essentially a vote against another; however, other people are voting for the competitors. In fact, the next time one of those ‘other’ votes may be ours.

Meanwhile, a ‘no vote’ conveys valuable information to all who are willing to listen and learn from it. When companies assimilate such negative feedback, they make themselves better, their industries stronger, and stock markets more stable.

It’s very unlikely that a mother bets against her own daughter or son for anything, but other ‘no votes’ are not necessarily bad. Short selling a company’s stock can be a good or bad bet for the investor. It also can be “Mindful Marketing.”

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NFT: Not Free for the Taking?

3/28/2021

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

Like most people, I was amazed when an NFT of a collage by the artist Beeple recently sold at auction for $69 million. It’s worth pondering why anyone would pay so much for a blockchain-based asset, but the sudden popularity of NFTs may signal a more important concern: the price that individuals increasingly pay because others can easily digitize and share their work.

Beeple’s nonfungible token has been one of several recent high-priced, head-scratching NFT purchases:

$389,000 for “Death of the Old,” a music video by the musician, singer, and songwriter Grimes
$580,000 for Nyan Cat, “an animated flying cat with a Pop-Tart body leaving a rainbow trail”
$3.6 million for “Ultraviolet,” an album by electronic-music artist Justin Blau, aka 3LAU

So, what do people who pay thousands or millions of dollars for such NFTs actually get? They receive proof of ownership of the digital item, which comes in the form of “a unique bit of code that serves as a permanent record of its authenticity and is stored on a blockchain, the distributed ledger system that underlies Bitcoin and other cryptocurrencies.”

What makes the passion for NFTs puzzling is that people who purchase them gain virtually no exclusive use of their virtual property. For instance, Nyan Cat is ten years old and “has been viewed and shared across the web hundreds of millions of times.” There’s no practical way for the feline’s new owner to stop others from viewing or posting their newly-acquired kitty.

What NFT owners receive amounts to little more than “digital bragging rights.” It’s kind of like holding the title to a car that anyone else can drive. Well, at least the owner can point to the title and say, “It’s mine.”

The possibility that others may be willing to pay even more for certain NFTs can give them value by virtue of their potential resale. There also may come a time when some NFT owners will be able to more readily restrict access to their digital property and monetize their asset.

In that way, perhaps NFTs have become so popular because people notice a troubling trend: Individuals spending their time, energy, and talents to create things of value, only to have ‘anyone with a smartphone’ duplicate and share the work with no consideration of, or compensation for, its creator.

This issue hit home for me recently when I saw this headline in the Chronicle of Higher Education: “Deadman Teaching.” As a college professor, I know how helpless one can feel in front of class when nothing seems to be going right, but the focus of this piece was quite different.

The article described the experience of Aaron Ansuini, a college student who was really enjoying an art history course taught on video by a deeply knowledgeable and enthusiastic “bespectacled, gray-haired professor,” François-Marc Gagnon.

During one of the engaging lectures, Ansuini had a question he wanted to ask his instructor, so he searched for the professor’s name online, thinking it would be faster than locating the syllabus on his laptop. What he found was an obituary--Gagnon had passed away at the age of 83 about two years earlier.

Until then, Ansuini and other students had no reason to think that their professor wasn’t still living. The course syllabus made no mention of his passing, and students had been receiving messages they thought were from Gagnon but must have been from a teaching assistant.

Tom Bartlett the author of the Chronicle article, reached out to one of Gagnon’s children, Yakir Gagnon, a researcher at Lund University, in Sweden. On one hand, the son thought his father would be very happy that his insights were still finding an audience; however, he also wondered about the intellectual property implications and who owned the rights to the work.

As someone who teaches a significant number of classes each week, I can’t help but wonder the same thing: whether ‘digital me’ might keep teaching after my death, but also how copies of my work might be used now without my knowledge or consent. I also can imagine two main objections to such concerns—one related to relevance and the other to responsibility. I’ll try to address both:

1) Relevance: A natural reaction might be, I’m not a teacher, so Gagnon’s case doesn’t apply to me.” However, people in all kinds of occupations write, say, and do instructive things that others will read and watch, if someone digitizes and shares them.

For instance, anyone familiar with YouTube knows its abundance of instructive videos, from cooking rice to repairing cars, which often come in convenient five- or ten-minute clips. Most of the videos are shared with the consent of their creators, but not all, as evidenced in part by many posts that seem prematurely removed. Some pirated videos likely earn money for others without their owners’ knowledge or consent.

2) Responsibility: Even those who understand that unauthorized sharing can potentially affect anyone may still believe that employers own everything their employees do. It’s true that in a principal-agent relationship, the agent (employee) has a fiduciary responsibility to act in the best interest their principal (employer).

In the case of Gagnon, because his university presumably paid him, he (the agent) had a responsibility to do what his principal (the university) required, i.e., to teach art history classes. If for some reason he didn’t want to do that, he shouldn’t have collected a paycheck. However, did paying the professor to teach a specific class during a particular semester give his employer the right to use his digitized teaching to instruct other classes, without giving him or his heirs additional compensation?

In the world before hyper-digitization, such obligations were rather clear-cut: Job performance happened in real-time, largely constrained by a particular place and time. The introduction of early recording and duplicating devices (e.g., video cameras, copy machines) stretched those boundaries.

In the current era of highly-advanced and widely-democratized digital technology, along with broadly-used social media platforms, those boundaries have been blown wide open. Duplication and sharing anyone’s work, including employees’, is incredibly easy and enticingly convenient.

The questions, then, become what employee work is fair to share digitally, where, and for how long. Some may suggest that employers hold complete sharing rights during and even after the agent-principal relationship has ended. Perhaps such broad employer ownership could be justified if agreed to with informed consent, but even then, the agreement would only be fair with appropriate compensation.

What is appropriate pay? It might be a percentage of the present value of projected future earnings from the digitized work. Or, it could be royalties, or residual income, that accrues whenever the work is shared. The latter suggestion may seem unreasonable, but there is strong precedent in the form of television actors who are often compensated with royalties for each episode that airs in syndication, or songwriters who earn money every time their music is sold or played.

Although some undoubtedly do this, it would be unfair to pay a musician to play a piece once, record the performance without her knowledge, and make money by selling her art without her consent. But again, even if there is informed consent, people deserved to be fairly compensated for their digitized work when it’s shared and continues to bring in dollars.

In a sense, everyone is an artist, creating content that benefits others now and perhaps into the future, if digitized and shared. Maybe that future will include more robust ownership standards based on blockchain systems for sharing. The current fervor for nonfungible tokens may be unfounded, but NFTs might be writing a script for more “Mindful Marketing.”

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Recoloring History

3/12/2021

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

February’s Black History Month was an important reminder of the impactful roles people of color have played in our world. History should be about what actually happened; however, some entertainment has actors playing roles that were really performed by people of other races. Now a media icon’s popular streaming series is shining a light on such controversial casting.

In online entertainment, where content is king, Netflix’s original series Bridgerton, about the lives of Regency-era nobles, has risen above the populace to become a royal success. Other period pieces like Game of Thrones and The Crown also have shown viewers’ appetites for aristocracy, but Bridgerton is different in one very visible way.

Playing the roles of English nobles and others, people of color are many of the series’ leading actors, for instance: Regé-Jean Page, Ruby Barker, Jason Barnett, Martins Imhangbe, Sandra Teles, Anand Desai-Barochia, and Golda Rosheuvel. In fact, Rosheuvel plays one of the show’s highest-ranking royals, Queen Charlotte.

Although some believe that the real Queen Charlotte “descended from a Portuguese branch of nobility with African ancestry,” even a casual royal-watcher knows that the bloodlines of English nobles are rather consistently Caucasian. So, to see persons of color playing the parts of dukes and duchesses is at least surprising, and some might say ‘historically inaccurate.’ Either way, Bridgerton begs the question:

Should an actor of one race portray a person of another?

First, it’s important to recognize that Bridgerton is not exactly breaking new ground. A few months before COVID closed the curtain on live performances, my wife and I had the privilege of visiting Philadelphia and seeing one of the best examples of diverse casting: Hamilton. The musical mega-hit features many people of color portraying individuals who in reality were white, e.g., George Washington, Thomas Jefferson, Aaron Burr.

However, actors were crossing racial lines long before Hamilton hit Broadway in 2015. In fact, it’s easy to find such film examples over the past century, and it’s worth noting that in most cases the roles were reversed, i.e., white actors played either real or fictitious people of color, for example:

Angelina Joline as Mariane Pearl in A Might Heart
Ben Affleck as Antonio J. Mendez in Argo
Joseph Fiennes as Michael Jackson in Elizabeth, Michael, and Marlon
Mickey Rooney as Mr. Yunioshi in Breakfast at Tiffany’s
Laurence Olivier as Othello in Othello
Natalie Wood as Maria in West Side Story
Johnny Depp as Tonto in The Lone Ranger
Katharine Hepburn as Jade in Dragon Seed
Elizabeth Taylor as Cleopatra in Cleopatra
John Wayne as Genghis Khan in The Conqueror

So, what issues are really at stake when it comes to actors’ racial representations?

The most obvious seems to be historical accuracy. Participants’ personal identities (racial, ethnic, gender, etc.) are important for understanding past events and how they impact us today. For instance, it would be dishonest to depict WW II’s Tuskegee Airmen as Asian, Hispanic, or white, when almost all the squadron’s aviators were Black. Doing so also may steal a sense of pride from African Americans today.

However, does that same need for ‘identity accuracy’ apply to entertainment? Not necessarily. When we watch a television series, a feature film, or a Broadway show, we know that the actors are not the actual people—it’s a morally-acceptable accommodation that Alec Hill calls “mutual deceits.” Play-goers understand that Lin-Manuel Miranda is not actually Alexander Hamilton. They know that he's just pretending to be him for a few hours.

The same logical likely applies to Bridgerton. Even though some of the show’s characters were real people, like Queen Charlotte, it’s okay for people of other races to portray them, because it’s a largely fictional series that viewers know is taking creative liberties and not purporting to be very factual.

However, that artistic license shouldn’t be wielded with impunity. There still need to be standards, particularly related to portraying people in ways that reasonably represent who they are or were.

If an actor ever played me in a movie, which will certainly never happen, I’d be less concerned that the actor looked like me and more concerned that he acted like me. No one alive or deceased deserves to have their character defamed, which is an issue I’ve written about on several other occasions:

Accuracy consistent with the nature of the artistic creation (e.g., comedy vs. drama) is certainly important, but two other race-related factors also deserve consideration:

Opportunities: While it’s convenient to conclude that white actors can portray people of color and vice versa, that generalization fails to account for centuries of discrimination that have often kept from racial minorities opportunities afforded others, including work in acting. To help overcome that historical disparity, a case can be made that persons of color should receive added consideration for acting roles.
Representation: Similarly, it’s encouraging for people of any race, ethnicity, or gender to see themselves represented in desirable occupations. Acting is such a profession for many, but even more, actors paint pictures of career possibilities with each profession they portray, from A–accountants to Z–zookeepers.

Realizing that my own background and identity influence my thoughts on this issue, I asked an astute student of mine, Mikayla Broome, who is a person of color, to share her perspective. Not surprising, she offered insights that hadn’t occurred to me.

Mikayla first disclaimed that while Bridgerton seemed intriguing, her impressions of the show came mainly from seeing its trailer. She hadn’t watched any episodes because of their graphic sexual content—a good call that may be reason for future Mindful Marketing analysis.

In addition, she suggested that although she understood others’ affection for the show’s racial diversity, the setting in Regency-era England made the series seem "unrealistic" to her. In keeping with that sentiment, she would “have no problem with white actors depicting the characters.” She emphasized that was her personal opinion and she respected those whose attitudes differed.

Each of these reflections were instructive to me, but it was something else Mikayla shared that I found especially enlightening:

“I would be much more interested in a show depicting the lives of people of color in their own culture . . . like the royalty in Benin, Nigeria, the Tang dynasty in China, the Gupta dynasty in India, or Arsinoe the princess of Egypt. People of color love to see themselves represented on the big screen with cultural accuracy. We have such rich histories that I see no need to insert us into stories that are not ours.”

Again, Mikayla emphasized that her personal opinion didn’t negate the potential value of diverse casting like that described above. However, she rightly suggested that the bar should be set higher.

In the category of fiction, Disney has taken significant diversity strides with feature films like Mulan, Moana, and Coco. However, there also are so many inspiring stories to tell of real-life heroes from underrepresented people groups, such as those shared in Hidden Figures, The Boy Who Harnessed The Wind, and a Ballerina’s Tale—a documentary about Misty Copeland, the first black female principal dancer of a major international ballet company.

One might think that films featuring real-life diversity are kind-hearted charity works that do good socially but not well financially. According to research by UCLA’s Center for Scholars & Storytellers, that characterization is not the case. In analyzing 100 films released from 2016 to 2019, the study found that “films with diverse characters and authentic stories actually make more money at the box office.”

Interestingly, Mikayla is double-major in Dance and Business Administration. Perhaps her future will in some way involve bringing to light real-life stories of underrepresented people.

Lives are stories that intertwine to create a rich tapestry of tales that marketers and others need to tell well. At the same time, they should seek opportunities to share more real-life stories born from backgrounds of diversity.

In entertainment, it’s sometimes okay to recolor history, but it’s even better to depict individuals and events just as they were. Regardless how one might classify Bridgerton, true stories told accurately are more often “Mindful Marketing.”

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Leaving a Legacy of Irreverence

2/28/2021

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

A teenage football player’s verbal hits on an MVP NFL quarterback led amateur and professional sports analysts alike to call a personal foul. ‘Who taught the young man to talk that way?’ was the question most asked, including many of the world’s top sports minds. Is it possible the teen learned to heckle from some of the same commentators who have censured him?

Heisman Trophy winner, former Carolina Panthers star, and recent New England Patriots quarterback Cam Newton was leaving the field at a teen football camp in Myrtle Beach, SC, when one of the young campers inexplicably began to berate him: “You a free agent! You a free agent! You're about to be poor!”

Newton smiled as he replied “I’m rich,” which caused the teen to reiterate his attack and led Newton to repeat his retort, all while keeping his cool and eventually asking to talk with the teen’s father.

After the video went viral, several current and former NFL players joined the social media uproar to express support for Newton, who, after all, was there to help the aspiring athletes. Many paid media pundits also offered their opinions, including ESPN’s most passionate personality, Stephen A. Smith.

On First Take, a daily sports talk show he cohosts, Smith came down hard on the contentious teen, delivering an unsympathetic rebuke of the young player’s abrasiveness. Some of Smith’s harsh criticism included:

“That kid should be ashamed of himself. If I was his parent, he would have been grounded, he would have been punished. I might have slapped him upside his head.”

“That was a disgraceful, disgraceful display of behavior by that young kid.”

“The level of disrespect that young kids show to their elders is one of the problems that we have existing in today’s world.”

NFL analyst Louis Riddick emphatically agreed that there’s a troubling rise in insolence among adolescents: “We’re failing in some way shape or form that the youth of our country feels as though they have a right to talk to people that way in any kind of forum, quite honestly.”

Such comments beg the question: ‘When it comes to modeling civil dialogue, who is setting such a bad example for young people?’ In admonishing the teenage heckler, Smith suggested that the breakdown is not happening on the home front: “What would get you to do that to begin with, because those same parents were there, those same coaches were there. They taught you better than that. You knew better than that before you did it.”

Tweeting what appeared to be a heartfelt apology, the beleaguered teen confirmed Smith’s theory that his parental upbringing was not to blame for his actions: “First I would like to start off by saying my parents never taught me to [treat] people disrespectful.”

So, if family is not at fault for this and other youthful irreverence, who is responsible? Could it be that this young man learned insolence, at least in part, from one of the same sports commentators who castigated him?

Anyone who enjoys ESPN knows Smith as someone with a very sharp sports mind who is always insightful, usually entertaining, often cantankerous, and occasionally uncivil. Unfortunately, it’s easy to find instances of the last category simply by searching YouTube for “stephen a smith angry” or some similar terms. Here are a few of the odious outtakes, including their starting times in the clips:

“You know, you [Will Cain, former ESPN analyst] make me sick sometimes; you make me sick sometimes, please, please, just be quiet and listen because let me tell you something: You don’t know what the h*** you talking about . . . Zip it. I’m giving you facts. You don’t get to speak right now . . . People disagree with me all the time and they just end up wrong like you.” [0:14]

“This man [Kwame Brown] was a bona fide scrub; he can’t play. No disrespect whatsoever, but I’m sorry to tell everybody the truth, the man cannot play the game of basketball . . . He has no game whatsoever, plays no defense, doesn’t have the heart, the passion, or anything that comes with it.” [1:25]

“Before I get to the phones, let me say this about Joel Embiid for the Philadelphia 76ers. What the h*** was that! What the h***! You freaking kidding me?” [:01]

How likely is it that young sports fans see Smith’s rants? In September of 2019, ESPN Digital was the number one sports platform “across every key metric and demographic.” What’s more, the platform saw a 64% year-over-year increase in people age 13-24, which contributed to the medium reaching 109.2 million unique visitors—about a third of the U.S. population.

Similarly, in 2018 Statista reported that 35.71% of respondents aged 18-29 watched ESPN during the previous month. All this to say, media metrics suggests that a very high percentage of young sports fans view ESPN, where they are very likely to see Smith, who is probably the network’s most visible personality and is certainly its highest paid, at $8 million a year.

Smith–viewer correlation, however, does not necessarily mean causality. Young athletes also may be mimicking the impertinence of others, namely that of professionals who increasingly do disrespectful things like taunt opponents after touchdowns, brazenly flip bats after home runs, and stare down defenders after dunks. Other ESPN commentators sometimes celebrate such actions on SportsCenter’s Top Ten plays—see #3 at 1:55.

However, an even more direct correlate with adolescent irreverence may be professional athletes’ trash-talking: the in-game verbal sparring that prizes putdowns, is sometimes seasoned with profanity, and can easily lead to physical altercations. ESPN tends to laugh off or even eulogize ‘the most memorable trash-talking moments.’

So, put yourself in the cleats of the teenage football camper. You love sports, you watch media like ESPN, you see top athletes glorified for trash-talking and other irreverent acts, and you listen to sports analysts’ verbal attacks on others. It’s not hard to imagine how anyone, let alone an adolescent who is still learning to distinguish certain socially unacceptable behaviors, could think it’s funny to take some verbal jabs at an NFL star. Of course, it wasn’t okay, but in light of all the mixed messages from role models and sports media, the teen’s actions should not be surprising.

Ironically, ESPN’s YouTube title for the First Take clip referenced above is “Stephen A. reacts to Cam Newton’s incident with a trash-talking camper.” Granted, there’s the issue of youth disrespecting age, but what’s the fundamental logic or fairness in condemning the “trash-talking” of some while celebrating the trash-talking of others?

It’s also ironic that several years ago, Smith made his own caustic verbal attack on an NFL quarterback, JaMarcus Russell of the Oakland Raiders. Here’s what Smith said at 2:18 into the clip:

“I am a person that believes in second chances. I think America is the land of second chances, except for when it comes to this dude, Mr. Jabba the Hutt, you fat slobily, no-good lazy bum of a quarterback.”

“This dude should be arrested for being a thief. He stole money from the Oakland Raiders for years. I’m talking $40 million dollars. The dude had about seven starts, did absolutely positively nothing. He cashed in the money, evidently used it on buying a bunch of donuts.”

Some may say Smith’s QB hit was worse than the teen heckler’s, “You a free agent! You a free agent! You're about to be poor!” Although Smith didn’t say his words to Russell’s face, he probably planned his tirade and knew it would be broadcast on national television, which also was arguably worse.

In his commentary on First Take about the heckling teen, Smith said, “I do think it takes a little bit of looking in the mirror to ask yourself, what would get you to do that?” Of course, the point here is that Smith could benefit from some of the same introspection.

However, he’s not the only one who needs to do self-assess. It’s tempting for any of us to demand, 'Do what I say, not what I do.' It’s also very easy to see the “speck” in someone else’s eye while overlooking the “plank” in our own.

I’ve been guilty of that hypocrisy at times, along with failing to appreciate my action’s influence on others, including young people. There have been occasions when I’ve watched painfully as one of my children did something ‘the wrong way,’ only to realize, ‘they learned it from me.’

Such unwanted imitation reminds me of Ralphie in The Christmas Story. After he accidentally swore in front of his father, his mother asked him, “Where did you hear that word?” Ralphie conveniently told her it was one of his friends, but he knew, “I had heard that word at least 10 times a day from my old man. My father worked in profanity the way other artists might work in oils or clay. It was his true medium, a master.”

The best way to avoid others imitating our bad art is to not make it. That approach comports with Riddick’s recommendation:

“Instead of being too shocked about [the teen’s heckling] and spending too much time being angry about it, try to do something to change it, try to do something to positively impact the youth of our country so that kind of thing doesn’t happen.”

For ESPN, that positive impact could come by ending its own analysts’ trash-talking and not exalting athletes who let their mouths run afoul. No one’s trash-talking should be tolerated, let alone celebrated, and especially not monetized.

It’s dangerous for any of us to think, “It’s okay for me to do it, but not for you,” particularly when our actions influence young people learning social norms. Smith speculated that the heckling incident could be “a teaching moment, a learning moment.” Let’s hope it is for him, for ESPN, and for all of, so we can put a collective lid on this rancid type of “Single-Minded Marketing.”

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When TV Commercials Wink

2/14/2021

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

As a Seinfeld fan, one of my favorite episodes is when George’s eye catches a piece of flying grapefruit, causing him to confuse everyone with his involuntary winking. Such hijinks are funny for a television sitcom, but what happens when commercials use conflicting verbal and visual cues, particularly on TV’s biggest stage?

Before the recent big game, a friend graciously invited my analysis of the ads—You don’t have to ask twice for my opinion on advertising, especially Super Bowl commercials, so I shared thoughts about one particular ad that seemed strange.

Toyota’s “Upstream” commercial featured the adoption story of Jessica Long, a 13-time gold-medal-winning Paralympic swimmer. Long’s rise to success despite severe adversity was inspiring; however, there was also something unsettling about the ad.

Pushing against the positive verbal messages of parental love and athletic achievement was a literal stream of cold, dark water that ran through every scene, including the family’s home and other indoor places. That’s a disconcerting sight that can cause anguish for anyone, especially those who have experienced floods in their home, school, or work.

The negative visual of flood water worked against the ad’s affirmative verbal messages, significantly diluting the positive affect Toyota likely wanted for its ad, and making it “Simple-Minded Marketing.” The automaker certainly had good intentions, but I doubt the inadvertently somber spot did much to boost the company’s brand.

I remembered this ad partly because of its unpleasant aftertaste but also because I’ve studied such verbal-visual disconnects before. Several years ago, I did research on the same phenomenon found in pharmaceutical ads, which are probably the worst offenders when it comes to sending mixed commercial messages.

When we watch a prescription drug ad, we usually hear a list of the medication’s side effects, which the Food and Drug Administration (FDA) mandates. However, as a narrator recites those potential negative outcomes, the commercial often shows very pleasant visuals, like the ones seen in this ad for Lipitor. At about 33 seconds into the spot, a narrator starts to quickly read several serious warnings:

“Lipitor is not for everyone, including people with liver problems and women who are nursing or pregnant or may become pregnant. You need simple blood tests to check for liver problems. Tell your doctor if you are taking other medications or if you have muscle pain or weakness. This may be the sign of a rare or serious side effect.”

Ironically, the visual backdrop for these weighty words is a guy and his dog taking a pleasant walk through the woods and later jumping into a lake for some swimming fun. Yes, we hear the side effects in such ads, but are we really listening to and understanding their gravity, given that very positive visual scenes distract us from those negative verbal messages?

That’s the question I set out to answer through research that began with a group of students in an Advertising Ethics class I was teaching. In a controlled empirical study that involved commercials for fictitious pharmaceuticals, we found that people do indeed discount drugs’ negative side effects when shown positive “dissonant” visuals at the same time.

I presented those findings at the American Marketing Association’s Marketing & Public Policy Conference in Washington, D.C., where a member of the FDA commended the research and asked for a copy of the presentation. Health Marketing Quarterly later published the study.

So, one “Simple-Minded” Super Bowl ad failed to make effective use of reinforcing, or “redundant,” visuals—no big deal. Actually, several other $5.5 million+ spots made the same mistake in similar ways and in doing so conveniently completed the other three quadrants of the Mindful Matrix:

“Alexa’s Body” - Amazon claimed the steamiest spot in this year’s Super Bowl. For nearly sixty seconds, a female Amazon employee fantasized about handsome Black Panther star Michael B. Jordan, who replaced the smart speaker in her lustful daydreams, which included Jordan removing his shirt and joining her in a bubble bath for two.

The commercial was uncomfortable to watch in mixed company and may have posed problems for parents, but the real issue was the spot’s repeated sexual objectification of Jordan. Role-reversal (a woman mentally undressing a man) may have seemed funny, but no one should be reduced to their body parts or have their personhood downgraded to a “vessel.” Similarly, it’s dangerous to objectify men as doing so suggests that it’s also okay to objectify women.

The ad involved dissonant visuals in that images of a sexy superstar have nothing to do with voice commands about ‘the number of tablespoons in a cup’ or ‘turning on the sprinklers.’ The pairing of an A-list celebrity with Alexa probably has helped keep Amazon’s smart speaker top-of-mind, but all the gratuitous sexual innuendo made the ad “Single-Minded Marketing.”

“Happy” - In its “Ultra” light beer ad, Michelob employed an entire lineup of past and present all-star athletes. For instance, there were still shots and/or video clips of Serena Williams, Mia Hamm, Anthony Davis, Usain Bolt, Billy Jean King, Arnold Palmer, Wilt Chamberlain, Jimmy Butler, Peyton Manning, and more.

I wonder whether Michelob got permission from all these athletes, or their estates, to associate their images with its brand, but assuming it did, there’s still another problem that directly involves dissonant visuals: People don’t ascend to those kinds of athletic heights by downing much beer. There’s little to suggest that alcohol enhances athletic performance; in fact, alcohol has exactly the opposite effect: It reduces aerobic efficiency, impairs motor skills, decreases strength, disrupts sleep, and slows recovery.

Michelob’s suggestion that happiness helps athletes win may have some truth to it, but there’s clearly much more to athletic achievement, namely physical and mental discipline both of which alcohol easily impairs. For that reason, it was irresponsible of Michelob to show images of athletes in uniform, on their courts, fields, etc., along with alcohol-friendly soundbites such as, “fueling the run toward greatness” and “something more vital.”

How ironic and tragic it was that Kansas City Chief’s outside linebacker coach Brit Reid, son of head coach Andy Reid, caused a multi-vehicle accident days before Super Bowl, apparently due to alcohol impairment. The accident caused him to miss the game and left a young girl fighting for her life. Alcohol and athletics definitely don’t mix, and it’s doubtful that such precarious positioning will give Michelob’s brand much boost, which makes the beermaker’s ad “Mindless Marketing.”

“Get Back to Nature” - After the three commercials just described, it’s easy to be suspicious of all Super Bowl spots, believing that most played with consumers’ minds and sacrificed social mores. Thankfully however, the preceding ads were exceptions. Most of the commercials employed redundant, not dissonant, visuals that appropriately reinforced their verbal messages.

One of the best examples of such visual-verbal consistency was Bass Pro Shops and Cabela’s 60-second spot that featured clips of ordinary people planning for and enjoying beautiful places in the great outdoors while hiking, fishing, camping, and more.

Sprinkled into some scenes was gear that one could probably purchase from the outfitter, but none of the product placement was overdone; rather, all subtly and artfully supported the simple call to experience nature. Consequently, viewers were likely both to remember the firm’s ‘enjoy the outdoors’ value proposition and to believe its closing promise, “We’re there for you.”

Bass Pro Shops and Cabela’s commercial wasn’t the only advertiser to hit a home run in terms of verbal-visual consistency that was both effective and ethical. A couple of other best-practices ads belonged to Huggies for “Welcome to the World, Baby” and to Indeed for “The Rising.”

A wink is the epitome of a dissonant visual—it slyly states, “Don’t believe what I’m saying.” Advertisers shouldn’t ‘wink’ with their ads, i.e., use dissonant visuals that contradict their spots’ verbal messages. Instead, commercials should enlist strategically-chosen redundant visuals that reinforce the right verbal messages. In Super Bowl ads and in other communication, that consistency makes for “Mindful Marketing.”

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When TV Commercials Wink

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