Category: Promotion37eb4ea826

A Marketing-Ethics Professor Grades Facebook’s Data Policy

4/21/2018

by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

You’ve heard about Cambridge Analytica, data-sharing, the 2016 election, and Mark Zuckerberg’s two trips to Capitol Hill. Rather than add one more opinion of what went wrong and why, I’d like to share something a few of Facebook’s two billion users might find even more helpful: an evaluation of the social media giant’s current data policy.

As an educator, I wasn’t eager to tackle another big ‘grading’ project (I have plenty of others right now), but after pouring over the firm’s privacy-related webpages, I’m glad I did. I learned much in the process, and I believe there are several useful takeaways for others who have an interest in how Facebook manages our data.

Most of my analysis stems from Facebook’s Data Policy page, which describes at length the company’s approach to user privacy. This page also contains links to a variety of other pages that unpack specific components of the policy.

Here’s my evaluation:

Readability: "A"
We’ve all experienced contracts and terms of service that we can tell at a glance will be a ‘bear’ to get through, perhaps because of all capital letters or marathon paragraphs. Facebook’s formatting is much more user-friendly, which may seem like a small thing, but if people avoid reading the policy, what good is it?

The policy features short paragraphs, many with three sentences or less, prefaced by bolded headings, which help readers locate specific information. Likewise, the overall organization of material is clear and logical. For instance, several main headings, set in a larger blue font, delineate sections for answering: “What kinds of information do we collect?” “How do we use this information?” and “How is this information shared?”

Clarity: "A"
Organization and formatting are helpful, but they’re meaningless if we can’t interpret what’s said. Most of us have experienced the mind-numbing legalese that seems as if it were written to confuse and confound. Fortunately, Facebook uses language that’s much more accessible, and if technical terms that some users may not recognize are needed, the company explains the concepts. For example, here’s how the firm describes cookies:

“Cookies are small pieces of text used to store information on web browsers. Cookies are used to store and receive identifiers and other information on computers, phones, and other devices. Other technologies, including data we store on your web browser or device, identifiers associated with your device, and other software, are used for similar purposes. In this policy, we refer to all of these technologies as ‘cookies.’”

Sometimes, however, even a clear explanation is not enough. In those instances, Facebook goes a step further by providing specific examples like the following one to describe how it shares data with third parties:

“We may tell an advertiser how its ads performed, or how many people viewed their ads or installed an app after seeing an ad, or provide non-personally identifying demographic information (such as 25 year old female, in Madrid, who likes software engineering) [emphasis added] to these partners to help them understand their audience or customers, but only after the advertiser has agreed to abide by our advertiser guidelines.”

Ease of Use: "A-"
Given that Facebook’s business model is based almost entirely on managing user-provided information, it’s data policy is inherently complex, which makes it all-the-more important that users can easily find the information they want and make changes to fit their personal preferences.

The company facilitates those objectives by making ample use of hyperlinks to other pages, like this one for advertising preferences, which allows users to better understand and manage the ads they see. Facebook also has programmed a decent amount of flexibility into data-related settings. Similar to the previous example, users also can determine the specific information they’d like to keep private vs. make public through means such as managing their Public Profile and using the Activity Log tool.

In addition, Facebook allows users to delete their accounts whenever they wish, or deactivate them temporarily. With those options, however, comes an important caveat from the company: “Keep in mind that information that others have shared about you is not part of your account and will not be deleted when you delete your account.”

Facebook’s ease of use slips somewhat when it comes to reporting others’ objectionable content. On its webpage “Details on Social Reporting,” the company says, “We encourage people on Facebook to use the report buttons located across our site [emphasis added] to let us know if they find content that violates our terms of use so we can take it down.” However, no such buttons are readily visible. Instead, the intended option for such censure appears to lie under each post’s three-dot drop-down menu under the somewhat ambiguous selection “Give feedback about this post.”

Transparency and Thoroughness: "B+"
Brevity is a virtue, but that benefit is lost if there’s not enough information to adequately communicate a message. In many ways, Facebook does a good job detailing its multifaceted data policy. For instance, it identifies each type of third party with which it shares information about its users: advertising, measurement and analytics services, vendors, service providers, and other partners. Facebook also broadly describes the kinds of information these third parties receive and how they use it.

Along the way, the company provides links to other pages that contain more detailed information, such as advertiser guidelines, the kinds of information it collects, and how users can control the types of ads they receive. In addition, Facebook offers in its Help Center a “Security Checkup” and a series of security tips with links to additional resources such as password protection and antivirus software for Mac and Windows operating systems. Unfortunately, the Microsoft link is broken.

How could Facebook be more thorough and transparent? The company states:

“We do not share information that personally identifies you (personally identifiable information is information like name or email address that can by itself be used to contact you or identifies who you are) with advertising, measurement or analytics partners unless you give us permission [emphasis added].”

As a researcher, the notion that Facebook aggregates data and maintains individual users’ anonymity is reassuring. As a Facebook user, however, I’d like more explanation for the final part of the above statement: “unless you give us permission.” How exactly do we give Facebook permission to share “personally identifiable information,” where is it possible to view the permissions we have granted, and how can we rescind such permissions, if we want to do so? Similarly, Facebook’s data policy states:

“We transfer information [emphasis added] to vendors, service providers, and other partners who globally support our business, such as providing technical infrastructure services, analyzing how our Services are used, measuring the effectiveness of ads and services, providing customer service, facilitating payments, or conducting academic research and surveys. These partners must adhere to strict confidentiality obligations [emphasis added] in a way that is consistent with this Data Policy and the agreements we enter into with them.”

“Transfer information” seems like another way of saying ‘share data,’ which is reminiscent of the Cambridge Analytica debacle. Of course, Facebook adds that “these partners must adhere to strict confidentiality obligations,” but how exactly is that third-party confidentiality monitored and enforced? Perhaps the answer is ‘above our pay grade’ as consumers; yet, it would be comforting to know that new and more effective standards for accountability are in place that will help to avoid a similar Cambridge Analytica breakdown.

Conclusion
Along with the preceding assessment, it’s important to note three things:

1. We use Facebook for free. Since users don’t pay for Facebook, the social media platform needs to cover its costs somehow. Like most other media, it does so through advertising revenue. Advertisers aren’t going to foot the bill, however, unless they know who they’re reaching, hence the need to share at least some user data.

2. The purpose of Facebook is to share information. If we posted things on Facebook and no one ever saw them, we’d be upset. The very reason we use the platform is to share information. Granted, we may only want to share things with our friends or certain others, but in keeping with the prior point, ‘beggars can’t be choosers.’

3. Users enjoy a better experience when Facebook utilizes their data. Granted, we don’t want to be taken advantage of, but seeing ads for products we want or content related to topics we like are usually preferable to exposure to things that are of no interest to us. Such customization is possible because of the data we provide.

As the preceding analysis has suggested, Facebook’s data policy isn’t perfect. However, given the information-intensive nature of the company’s operations and the many different stakeholder groups who rely on that data, the company is doing a commendable job—one that warrants recognition as “Mindful Marketing.”

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Women: No Longer Auto Accessories

3/4/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

People love auto shows: the stylish bodies, the sleek lines, the alluring curves. While those descriptions fit the latest concept cars, they also work for the scantily dressed women seen standing next to them. Almost as long as there have been automobiles, companies have used attractive young women to help sell their vehicles. Some organizations, however, have taken a bold step to separate sex appeal from automotive appeal.

A variety of media, from calendars to TV commercials, couple women wearing suggestive attire with cars. The rationale for these pairings is that sex sells; i.e., certain companies believe that they can gain interest in their autos’ bodies by leveraging the natural allure of the human body.

Over the years, auto shows have been notorious for their use of highly-sexualized female models: Poised next to a manufacturer’s hot new car are one or more attractive young women, often sporting stilettos and wearing tight-fitting dresses with low necklines and high hemlines.

However, use of women as commercial eye-candy isn’t unique to automobiles. A variety of other industries like video gaming and consumer electronics employ ladies at tradeshows in the same sultry capacity. In fact, there’s even a belittling name for the women: “booth babes.” TMS Agency, a modeling firm with locations in virtually every state, specializes in such talent, describing the women’s function as follows:

“A booth babe is a female model hired to staff a booth at a trade show. The term implies a girl who is focusing more on her physical attributes to entice customers rather than her intellect to represent a company. Booth babe is also slang for a booth girl. Booth babes serve two purposes: 1. Attract attention to your exhibit due to their looks; 2. Assist with activities and demonstrate products”

It’s not hard to find women serving this primeval purpose at some of the world’s largest and most renown auto exhibitions like the Paris Motor Show and the North American International Auto Show. However, visitors to another major auto exhibition will no longer be exposed to the practice.

In its 88th year, the Geneva International Motor Show has hosted more than its fair share of booth babes. Just last year, for instance, Lexus, Fiat, and Alfa Romeo used attractive young women, outfitted in evocative attire, to help draw attention to their respective automotive entries. It appears, however, that this March in Geneva will be different.

Fortune reports that many of the exhibitors at this year’s show will not be bringing both babes. Some companies, like Lexus, won’t have any people accompany their cars. Other manufacturers, such as Fiat Chrysler, will use both men and women, outfitted in more conservative attire.

What’s caused the sudden change of heart for so many automobile manufacturers? Some cite the recent rise in cases of sexual harassment and a desire not to get caught on the wrong side of the #MeToo movement. Switzerland-based Nissan spokeswoman Sara Jenkins frames her firm’s decision in a straightforward, positive light: “It makes more sense to use product specialists because we’re selling cars.”

Anyone in marketing should appreciate Jenkins’ rationale—If your company is selling a product, particularly a complex and expensive one like a car, you want people who can talk intelligently about the vehicle’s features and benefits. That’s one of the top requirements for effective personal selling.

But, why not have both? Certainly, there are individuals who are very attractive and very smart. Why don’t automobile manufacturers hire them to wear skimpy clothes and work their tradeshows? One reason is that smart, hard-working people aren’t as easily enticed, and they know they have options other than putting their bodies on display.

Hopefully these car companies also realize what they’ve been doing to the women they’ve had on exhibit for so many years. The manufacturers have relegated these young women to human hood ornaments—items to ogle and awe at, like the masses of metal they’re posed to adorn. Just as the car companies have minimized the models’ attire, they’ve stripped away each woman’s personhood.

Unfortunately, that sexual objectification doesn’t only impact the models who participate in the tradeshows. It affects all people indirectly. The more we see women, or men, treated as objects, the more likely we are to think that such representations are normative, i.e., to believe that they’re okay.

Ironically, while reading the aforementioned Fortune article, an ad appeared on the side of my screen titled “Dream Big, Princess.” The link connects to Disney’s website where a 90- second video highlights many of the company’s animated heroines, interspersed with clips of young women today engaged in adventurous activities. The promotional piece encourages girls to become things like teachers, politicians, preachers, astronauts, and leaders. Of course, there’s no charge to grow up to be a booth babe.

Automobile manufacturers might not be banishing booth babes because of social conscience, but at least they're banishing them. Our world’s women and men will be better off as a result. The car companies also should be more successful in the long run, especially when targeting market segments that are increasingly and rightly appalled by the primitive practice. Showing people genuine respect will always be a foundation for “Mindful Marketing.”

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L.L. Bean's Still Happy Returns

2/23/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

There were three certain things in life: death, taxes, and L.L. Bean’s return policy. We’re now back to two. The iconic outdoor retailer’s decision to rescind its legendary product guarantee has ignited a social media firestorm, but who’s really responsible for the return policy retraction?

Leon Leonwood Bean founded L.L. Bean in Freeport, ME in 1912 to provide a single product: a duck boot called the Maine Hunting Shoe. Over the next 100+ years, the company expanded considerably, both in scale and scope. Despite the great growth, the firm maintained an unwavering focus on quality, backed by a virtually unequaled product return policy.

For more than a century, L.L Bean made a practice of “accepting any return, at any time, in any condition, regardless of the origin of the item.” However, that very liberal largesse came to an end just a few weeks ago when the company announced it would rein in its return policy. L.L. Bean now guarantees its products as follows:

“We stand behind all our products and are confident that they will perform as designed. If you are not 100% satisfied with one of our products, you may return it within one year of purchase for a refund. After one year, we will consider any items for return that are defective due to materials or craftsmanship.”

The company adds that it requires proof of purchase for any refund or exchange, but if customers provide their information at checkout, L.L. Bean will usually have record of the purchase. If not, a physical receipt is needed. In the case of gifts or other returns without receipts, the firm will offer merchandise credit in the amount of the last known selling price, provided that the product is “unused and unworn with the original packaging.”

So, why the change of heart after so many years? According to Forbes, abuse of L.L. Bean’s very generous return policy has been happening for decades; however, the exploitation reached a tipping point in recent years thanks to some particularly obnoxious behavior.

Some people, for instance, found that they could pick-up well-used L.L. Bean items at yard sales and second-hand stores and return them to the retailer for a full-price refund. With the expansion of ecommerce, such unscrupulous behavior has only increased as returns now can be made from anywhere without having to “look a company representative in the eye” when making an appeal.

It’s likely that L.L. Bean’s decision also has something to do with the pressure that so many retailers are now under, especially from Amazon, which has led to many Chapter 11 bankruptcy filings and the promise of even more store closings. Regardless of the specific reasons, L.L. Bean finally decided enough was enough.

Not surprising, many consumers have had a hard time swallowing L.L. Bean’s policy change and no problem voicing their displeasure. For example, one disgruntled customer complained, “Your return policy was the only reason I shopped at #LLBean! I shared your amazing service with friends, colleagues, and more. Now, I'll be sure to suggest they avoid like the plague!”

Others are even more adamant in their claim of personal harm, so much so that they’ve decided to pursue legal action. Victor Bondi recently filed a complaint in Chicago federal court seeking class-action status for a lawsuit against L.L. Bean. The suit alleges that the company is now depriving customers of benefits they had been promised by virtue of the long-standing and heavily-promoted warranty, which had ‘no conditions’ and ‘no end date.’

L.L. Bean likely anticipated that revising its return policy would not be popular, but did it anticipate this kind of backlash? Perhaps it should have, and maybe it could have taken a different tact and/or timeline in communicating and implementing the change. However, was the change itself wrong? As with every Mindful Marketing analysis, there are two filters for answering that question: economics and ethics.

According to Bloomberg, L.L. Bean has seen its rate of “abusive” returns double in the past five so that they now account for a full 15% of all returns. Over that timeframe, those abusive returns cost the company about $250 million.

Against annual revenue of around $1.6 billion, $250 million may not seem like much, but successful companies don’t concede hundreds of millions of dollars unnecessarily, especially when their sales have been “flat for a second straight year” and the retail landscape is increasingly competitive. Furthermore, L.L. Bean had to do something to stem the rapid increase of illegitimate returns, lest even more dishonest consumers try to defraud the company.

But doesn’t the new policy penalize honest customers who bought products with a certain understanding, only to have those terms of purchase changed without their consent or compensation? That’s a fair concern; however, two key factors diminish the argument:

First, L.L. Bean’s original guarantee was not a promise of lifetime replenishment. In other words, there was no reasonable way to interpret that the policy meant customers could buy a product, use it for years and years, then ask for a new one.

Every product wears out eventually. No clothing retailer is responsible for keeping its customers outfitted in pants, hiking shoes, or whatever, just because they once bought a pair from them. If people are looking for an “All you can . . .” option, they should go to a buffet. Interestingly, even such restaurants have restrictions, e.g., you can’t stay in the building indefinitely, and you can’t take food with you when you leave.

Secondly, even with the change, L.L. Bean’s policy is still far better than industry standards. Most retailers allow a couple of weeks or maybe a month to make a return. A few graciously give three months. I can’t think of another retailer that allows a full refund for a full year for no more reason than “I’m not completely satisfied.”

Furthermore, even after a year, L.L. Bean will still allow returns of products that “are defective due to materials or craftsmanship.” So, the company continues to have its customers’ back. Of course, this caveat means that consumers also must show good faith and make a compelling case for the return, not just “I wore it out over 15 years, now I want a new one.”

To use an analogy, many consumers have acted like horrible house guests who have taken advantage of their host’s generosity. L.L. Bean gave some special privileges to those guests, but in return they ransacked the refrigerator, beat up the furniture, and long overstayed their welcome. That bad behavior has forced L.L. Bean to enact some more restrictive but still very reasonable boundaries.

Individuals often react negatively to change, especially when it doesn’t seem to be in their favor. Rationale people, however, can understand why L.L. Bean’s policy change was warranted and how it’s still far better than industry standards. As a result, there should be very little loss in long-term business for the retailer.

In this instance, those guilty of single-mindedness are consumers. L.L. Bean’s new approach to returns checks out as “Mindful Marketing.”

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Mindless to Mindful: Super Bowl LII Ads

2/9/2018

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

The latest NFL championship was one for the ages. The football was exciting, and the ads were pretty good too. How did the spots stack up in terms of Mindfulness? There was at least one commercial for every category of the Mindful Matrix.

Given the weighty issues facing our nation and our world, it’s not surprising that a variety of spots took on important social concerns like diversity, overcoming physical limitations, and the role of families. These ads gave us a warm hug and put a smile on our face.

However, a few days later, do we even remember the companies that paid $5 million for a 30-second spot. For instance, which firm showcased a variety of people serving others while an audio clip of Dr. Martin Luther King Jr. played in the background? The answer--Dodge Ram.

Dodge did attempt to make a reasonable connection between its trucks and the ad’s theme (“Built to Serve”), but most of the video footage had nothing to do with pickups (e.g., a pregnant woman having an ultrasound). Meanwhile a few very short clips of Dodge trucks were overshadowed by all of the ad’s other visual and audio activity. I doubt I would have remembered that the spot was for Dodge had I not been keeping track of every ad.

It was kind for Dodge to spend millions of dollars to extol service, but will one 60-second spot make people any more inclined to serve, and will they associate Dodge with that call to action? Two likely “No’s” make this ad and most of the game’s other social cause spots “Simple-Minded Marketing.”

Speaking of ambiguous advertising, there was also an ad that featured actor Keanu Reeves motorcycle surfing. Even as I wrote this paragraph, I remembered the ad, but couldn’t recall to whom it belonged until I checked my list and saw it was for the online website creation software Squarespace.

However, the fact that the commercial had no discernable connection to web design was not the ad's only problem. One can imagine that the stunt, which Reeves preformed himself, was extremely dangerous for him and other drivers, like the one in the pickup truck that flashes through the scene going the opposite direction about seven seconds into the ad.

The Los Angeles Times reports that 103.4 million people watched the latest Super Bowl, which represents every age demographic from toddlers to senior citizens and unfortunately includes any number of daredevils who need little encouragement to attempt Reeve’s stunt. The Tide Pod Challenge, which has killed at least eight people, is a tragic reminder of the power media has to spur irrational imitation. It’s irresponsible for Squarespace to glamorize another dangerous act, which makes its Super Bowl ad “Mindless Marketing.”

Thankfully there were also commercials for which it was very easy to identify the advertiser. Diet Coke’s Twisted Mango spot was one of those ads. The commercial is pretty simple in terms of its creative execution. A girl with short bangs and long legs mentions the name of the beverage and starts dancing. Could anything be wrong with that ad? Well . . . yes.

The dance gets a little “sexier” near the end, but that’s not the main concern. The potential issue is that the actress in the ad is extremely thin. Skinny people deserve to feel good about their bodies like everyone else, but this young woman looks emaciated, skeletal. In other product/ad contexts, such a body image might not be as problematic, but this commercial is for Diet Coke.

When people talk about dieting, it almost always means they’re trying to lose weight. About 30 million people in the U.S., or a little less than 10% of the population, suffer from eating disorders, which “have the highest mortality rate of any mental illness.” It’s reckless for the Coca-Cola Company to use an actress whose body type can easily become a dangerous aspiration for people already thinking about dieting. Diet Coke’s ad will likely help sell soda, but it’s “Single-Minded Marketing.”

There were many ads from the latest Super Bowl that both created stakeholder value and upheld societal values. One of the best of the lot was for Pringles snack chips. The Kellogg Company’s iconic chips-in-a-can have been around for over 50 years, during which time there have been some new flavors, but little else has changed. How, then, could the company get enough bang for the buck from a Super Bowl spot?

Kellogg’s rose to the occasion by using its ad to suggest a very simple yet intriguing concept: stacking different types of Pringles to create unique flavor combinations, for instance, jalapeño-barbeque-pizza. Such palette-pleasing options are probably especially appealing to Gen Z and Millennials, who likely are the biggest consumers of these types of snacks.

Two other things going for the ad were its use of comedian/actor Bill Hader, well known for his work on Saturday Night Live and recognizable to many young people. Also, TV viewers consume a significant number of snacks, especially while watching the Super Bowl. That relevant context makes remembering snack food ads easier, and all of the above make Pringle’s commercial “Mindful Marketing.”

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Unclear Communication

10/21/2017

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

If a friend says her “head is spinning” or a coworker claims he could “eat a horse,” we don’t worry about a broken neck or a slaughtered stallion. Language is full of figures of speech. What’s more, we don’t need to be told every detail; a conversation’s context carries much of the meaning. That’s the way communication is supposed to work; although, it notably didn't during a recent college business class.

Professor Reb Beatty teaches financial accounting at Anne Arundel Community College in Maryland. To aid his students on the first exam, he told them several times to bring a “3 x 5 note card,” on which they could write any information they might find useful during the text. Allowing students a small ‘cheat sheet,’ is not unusual for college courses, especially ones involving quantitative topics.

On the day of the exam, students filed into the classroom with their usual books and bags and the note cards. One student, however, carried something much more conspicuous. Ten minutes before the test, Elijah Bowen entered toting a 3 ft. x 5 ft. poster, packed with information for the exam.

When he first saw it, Professor Beatty disregarded the jumbo card, thinking it was just a study aid that Bowen was using to cram before the test. However, when it became apparent that he planned to use the poster during the exam, the teacher confronted the student. Bowen explained that all of the information Beatty had sent about the card just said 3 x 5. Nowhere was there any mention of inches.

After hearing the explanation, Beatty relented and allowed Bowen to use the card, but in the back of the classroom where other students couldn’t read it. Of course, Bowen was delighted that he got to use the super-sized exam aid, which he had spent over an hour creating the night before. He also was very surprised his professor allowed him to do so: "It was fabulous. I was shocked." "I gave it about a 5 percent chance he'd let me use it."

But what were his professor’s feelings about the liberal interpretation of his instructions? Beatty said he was impressed by the ingenuity: "I was actually very happy for him.” "You have to have a student with the intelligence to recognize the loophole and then have the audacity to put it together and come in and try it." Beatty even took a picture of Bowen with the card and posted it to Facebook, where over 28,000 people shared it. The professor also appended his syllabus, adding the note card’s true size.

So, the story had a happy ending, right? Well, if you’re familiar with this blog, you know there must be more to the analysis. Plus, what does an exam in a financial accounting class have to do with marketing? Let’s see.

There are at least two examples of branding that happened here, the first of which was personal branding. Bowen branded himself as someone who’s not averse to bending the rules, or gaming the system. Although he knew his professor meant inches, not feet, he still tried the ploy, even acknowledging afterward that he doubted it would work.

As mentioned above, reasonable people interpret information rationally based on the context. They don’t argue with a lumberyard that its two-by-four boards should be 2 ft. x 4 ft. thick, and they don’t pretend that note cards are of a similar large size. Perhaps Bowen meant to be funny, but ultimately he showed a lack of integrity: He plotted to gain an advantage over his peers and feigned an unrealistic interpretation of the note card size, which even he didn’t believe. Such behavior does not reflect the kind of individual with whom most people want to work or otherwise interact.

The second instance of poor branding involved the portrayal of accounting—a very important field and a noble profession. Accounting abhors creative manipulation and exploiting loopholes, for which Beatty praised Bowen. Good accountants want their firm’s books to accurately and honestly reflect their firm’s financial realities, as Investopedia suggests:

“Creative accounting capitalizes on loopholes in the accounting standards to falsely portray a better image of the company. Although creative accounting practices are legal, the loopholes they exploit are often reformed to prevent such behaviors. A primary benefit of public accounting statements is that they allow investors to compare the financial health of competing companies. However, when firms indulge in creative accounting they often distort the value of the information that their financials provide.”

By allowing and even exalting Bowen’s gigantic note card, Beatty encouraged behavior that is antithetical accounting. Over time, endorsing such illicit activity will taint the field’s image, i.e., people will think of accountants more as dishonest schemers and less as trustworthy advisors.

College campuses cultivate some crazy behavior, much of which is a fun and harmless part of the undergraduate experience. College is also a place, however, where students develop work habits and reputations that go with them for much of their lives. For these reasons, devious behavior that disparages individual and collective branding must be called “Mindless Marketing.”

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Racial Representation Gone Wrong

10/13/2017

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Comedian W.C. Fields famously advised, "never work with animals or children," the idea being, both are unpredictable and likely to steal the spotlight. A somewhat similar ultimatum for advertisers might be “never make race the focus of ads.” At least that’s what Unilever is probably thinking now.

The Dutch conglomerate responsible for brands such as Axe, Lipton, and Breyers, recently lit up social media with reactions to a Facebook ad for one of its most iconic brands: Dove. The fact that the video featured three women of different races didn’t cause the controversy. Many ads depict as much or more diversity. The issue for many people was how the ad portrayed racial differences.

The video showed “a young black woman taking off her T-shirt and then morphing into a white woman, who in turn takes off her T-shirt, and turns into a woman appearing to be Asian.” Although Dove said it was celebrating the beauty of different races, many viewers saw the ad differently: they thought each morph implied some kind of racial improvement.

Unfortunately, such a repugnant interpretation is not unfounded, considering the long history of unfair racial characterizations in advertising, especially certain ads that have expressly illustrated what Dove’s critics claim. For instance, a 1940s print ad by N.K. Fairbank Co. showed a white girl asking a black girl “Why doesn’t your mamma wash you with Fairy soap?” More recently, a Chinese detergent commercial drew overwhelming accusations of racism for showing a young black man being pushed into a washing machine, only to emerge happily as a lighter-skin Chinese man.

Even worse for Dove is the fact that it made a similar mistake not that long ago. In 2011, the brand created an ad for its VisibleCare product that featured three women—one black, one Latina, and one white—standing left to right in front of enlarged pictures of skin and two signs: “before” on the left and “after” on the right. The ad was supposed to illustrate dry skin before using the product and smooth skin after, but the positions of the women relative to the signs made it seem like the ad was advocating ‘dark skin before, white skin after.’

That interpretation isn’t unreasonable given that several well-known skincare companies, such as Nivea, market skin-lightening creams. Africa is a favorite target market for such products. In West Africa, skin bleaching is a “multibillion-dollar industry,” as advertising and social pressure lead many to adopt the misguided notion that lighter skin is more beautiful. The highest frequency of skin-lightening occurs in Nigeria where “77% of Nigerian women use the products on a regular basis,” despite significant health risks that come with the treatments.

Skin-lightening is not limited to Africa, however, and among the companies pushing such products around the world is, you guessed it, Unilever. In markets that include India, the firm promotes its Fair & Lovely line, using ads that “depict dark-skinned women transforming into light-skinned women with a direct result of success in romance and careers.”

So, what should we make of Dove’s latest misstep via its t-shirt morphing ad? Well, first it’s important to note that the company has offered what appears to be a sincere apology:

“Dove is committed to representing the beauty of diversity. In an image we posted this week, we missed the mark in thoughtfully representing women of color and we deeply regret the offense that it has caused.” “[The ad] was intended to convey that Dove Body Wash is for every woman and be a celebration of diversity, but we got it wrong and, as a result, offended many people.”

It’s also worth noting that Lola Ogunyemi, the black actress in the ad, has voiced her support for the promotional piece, saying that she understands the backlash but believes the ad was taken out of context. She adds she felt honored to be the face of dark-skinned beauty in the ad and doesn’t consider herself a victim. However, she was unaware of the order that she and the other actresses would appear in the ad.

Ultimately, Unilever/Dove should have: learned from its past mistakes as well as those of other advertisers, recognized the ad’s implied endorsement of physically and socially harmful skin-lightening, and more thoroughly vetted the new ad before deciding to publish it. Respectful representation of racial diversity in ads is great, but Dove’s imprudent approach is an unfortunate example of “Mindless Marketing.”

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Barfarian Sneakers

10/7/2017

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

People once wore one sneaker to do everything. Thanks to Nike and other apparel manufacturers, there are now specialized sneakers for almost any activity, from basketball, to lacrosse, to volleyball. Maybe we shouldn’t be surprised, then, that one well-known company has created a special shoe just for this favorite pastime: drinking.

Yes, German footwear giant Adidas is marketing a shoe called the München (or, Munich) that has a “durable puke and beer repellent (DPBR) coating” that allows users to dabble in drunkenness without ruining their footwear.

Why would one of the world’s leading apparel manufacturers, which equips superstar athletes like Novak Djokovic, Lionel Messi, and James Harden, want to outfit the town drunk? The reason is more compelling than you might think.

Early fall is the time of year when many cities, towns, and other associations, host their own version of Oktoberfest, the lively celebration best known for one thing—beer. The granddaddy of all these well-oiled gatherings is the one in Munich, Germany, which claims to be “the largest festival in the world.” It just completed its 184th iteration.

Munich is located in the heart of Bavaria, world-renowned for its hops and boasting some of the most prolific beer-drinkers anywhere—the average Bavarian consumes 150 liters, or 40 gallons, of beer a year. Adidas is also in Bavaria, headquartered in Herzogenaurach, less than 200 km north of Munich and the original Oktoberfest.

Interestingly, Oktoberfest didn’t start as a keg party. It began as a wedding celebration for Crown Prince Ludwig and Princess Therese that included horse races and a “festival for the whole of Bavaria.” The following year, the horse races returned, and over the years, additional activities were added to the annual festival, including more places to buy beer.

The latest iteration of Munich’s Oktoberfest featured about 143 food and drink businesses, which started serving suds at 10:00 am on weekdays and 9:00 am on weekends. Those early hours helped vendors sell over 6 million liters of beer during the festival.

As you might imagine, with so much “liquid gold” flowing freely among 6.3 million visitors, there are likely to be incidents, such as the 7,900 people who needed to visit medical tens and the 600+ individuals who got alcohol poisoning. One Munich native describes the often unpleasant scene:

“During Oktoberfest, the city gets packed and there are drunk people everywhere, and all the time. The drunken debauchery often leads to fights, aggressive behavior, and bierleichen — so-called "beer corpses," which is what locals call the many passed out drunks lying on the hill behind the tents.”

This past year, an American tourist from Texas didn’t let his one-year old baby strapped to his chest stop him from getting plastered. As the man slumped over, police took the baby away and took him to the hospital.

Given its geographic and cultural closeness to the debauchery, it appears that Adidas has picked the perfect target market for its ‘drinking sneaker.’ In addition to the barf and beer-resistant coating, other details artfully reinforce the shoe’s positioning, e.g., a red and white check lining that matches the beer tents’ tablecloths, a brown and gold upper that coordinates with lederhosen, and the word “Prost” (German for “cheers”) embroidered on the side. Even at €199.95 (about $240), the sneakers sold out on one popular website, suggesting that Adidas has a marketing hit.

However, just because Adidas can sell a shoe for drinking doesn’t necessarily mean that it should. While many people drink responsibly, and some studies even suggest benefits from moderate alcohol consumption, there’s a difference between having a beer with dinner and drinking oneself into a stupor, which is when a sneaker’s protection against suds and vomit becomes most important. Consequently, it’s fair to ask, ‘Does the sneaker’s unusual positioning encourage drunkenness?’

Of course, no sneaker by itself will make people drink. Personal and social factors hold much more influence. Still, there’s something unseemly about products that promise to help us avoid the negative consequences of bad behavior. For instance, I’d bet that people who own radar detectors are more likely to speed. Do the detectors make them speed? No, but having a device in their vehicle that significantly reduces the probability of getting caught probably encourages them to take their chances.

Is the possibility of ruining one’s shoes a deterrent to drunkenness? It’s probably not a major factor, but it must have some influence; otherwise, Adidas wouldn’t have developed the special coating and consumers wouldn’t be buying up the sneaker's supply. The more important point is that by marketing the shoe, the company is essentially saying, ‘Go ahead and drink ‘til you hurl; we’ve got you covered.’

But, maybe it’s not just people who get drunk who can benefit from the sneakers. There also are individuals who drink moderately, or not at all, who risk having their shoes ruined by others’ indiscretions.

That’s a reasonable argument, except for the fact that it’s pretty unusual to get vomited on unless you’re keeping close company with buds who are bashed. Likewise, how many people are willing to shell-out $240 for sneakers when there's only a remote possibility that they’ll be walking in other people’s puke. It seems like the sneakers’ primary appeal, therefore, is to people who plan to get plastered. That bad intent is reinforced by Adidas offering a free beer mug with every purchase of the sneakers.

Aside from some people’s wild intemperance, Oktoberfest is a great cultural event that brings families and communities together to celebrate Bavaria’s rich history. Similarly, Adidas is a fine company that is smart to support its German heritage. However, any product that makes it easier to overindulge on alcoholic must be called “Single-Minded Marketing.”

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Three Years of Mindful Marketing

9/30/2017

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

After a TV show has been on-air for a while, the producers pull some of the best clips and create one of those retrospective episodes. Three years might not be a long time for television, but it’s a pretty significant stretch for a weekly blog about marketing ethics. So, after over 150 posts, it’s time to reflect and, most importantly, ask for your input into Mindful Marketing.

Live Q & A would be a great approach for this retrospective, but since I can’t take call-in questions, I’ll try to anticipate what’s on people’s minds. By the way, if you would like to offer feedback and are pressed for time, here’s a link to a brief survey, which I’ll share again at the end:
MindfulMarketingSurvey2017

Q1: When and why did you develop Mindful Marketing?
A1: After nearly 25 years working in marketing-related positions in business and in higher education, I felt compelled to do something more to encourage ethical behavior in the field. At its core, marketing is morally sound. Its aim to bring about mutually beneficial exchanges (win-win outcomes) is truly honorable. Unfortunately, though, some so-called marketers abandon those central tenets, hurting consumers and tarnishing the discipline. I want to change that behavior and restore a reputation of respect.

I developed the Mindful Marketing concept and related branding (logos, website, etc.) a little over three years ago, during the summer of 2014. The core of Mindful Marketing has been the Mindful Matrix, which visually captures the movement’s central concept: that good marketing is both effective and ethical. Although this model is admittedly simple, it took some time to develop each of the categories. Special thanks in that process to my wife Lili and to Nick Shulgach, who continues to be a great sounding-board and source of Mindful Marketing ideas.

Q2: When did the blog begin?
A2: The first Mindful Matters blog post came on September 27, 2014: "CVS Quits Smoking," which determined the retail chain’s decision to drop tobacco products from its stores was “Mindful Marketing.” I had never blogged before but thought such a social media presence could be a good way of spreading the Mindful Marketing concept.

Q3: Where do you get ideas for the blog?
A3:   I love news, especially business/marketing news. Whenever I hear a story that I think has potential, I add it to a growing list. I also regularly receive suggestions from friends, family, colleagues, etc. Some of the people who have made recommendations that I’ve used, with links to the respective posts, include: Alan Adler, Randy Basinger, Michael Boyles, Allison Grindle, Daniel Hagenbuch, Leah Hagenbuch, Vince LaFrance, Keith Quesenberry, and Dwayne Safer.

I’ve also appreciated having a couple experts write about their ideas. Both Laureen Mgrdichian and Keith Quesenberry have composed several great guest posts, for instance: Birthday Cheer or Profiteer? and Sex in Advertising: Touchdown or Fumble?

Q4: Have you missed any posts over the last three years?
A4: No! Thanks to an unending supply of ideas and several guest posts, there’s been an entry every week. That’s 158 posts, including this one, about topics ranging from diversity in advertising, to slackfill in product packing, to RFID chips in employees.

In terms of the Mindful Matrix categories, here’s how those evaluations have played out:
    60 - Mindful
    50 - Single-Minded
    11 - Simple-Minded
37 - Mindless

Q5: Do you have a favorite post?
A5: Of course, I like them all! One that I’ll always remember, though, I wrote on October 24, 2015, titled “Fantasy Sports Ads Mislead and Violate the FTC.” The online news magazine Quartz ran a version of the post on its site. Later, I received a phone call from a reporter for the Boston Globe, who interviewed me for an article he then wrote on fantasy sports ads. Someone from FTC Watch also spoke with me. If you’ve seen any fantasy sports ads lately, you’ll notice they’re no longer emphasizing atypical results. Maybe that blog post had an impact.

When writing each post, I also try to come up with a catchy title and an interesting picture. One of my favorite titles and pictures was for a piece I wrote about Animal Planet’s new TV program “My Fat Pet,” which is about the ‘trials’ of pet owners whose animals are overweight. I titled my post “My Pooch is Too Plump” and photo shopped french fries in front a picture of a rotund beagle. Well, it still makes me laugh.

Q6: Who is Mindful Marketing reaching and what is its impact?
A6: Two key target markets for Mindful Marketing are marketing students and practitioners. Hopefully students will embrace the idea that all marketing should be both effective and ethical, then carry that belief with them into their careers, which will eventually lead to positive change for the discipline.

Another important target market is ‘people who care,’ i.e., others who realize the nearly unparalleled influence marketing has on our world and want to see that impact be more consistently constructive.

I use the Mindful Marketing concept (Matrix) in classes almost every day. Other faculty across the country and abroad also use Mindful Marketing with their students to varying degrees, such as Vahagn Asatryan, Laurie Busuttil, Geoff Lantos, Laureen Mgrdichian, Keith Quesenberry, and Mike Wiese.

In addition, I’ve had the opportunity to share the concept with other audiences ranging from elementary school students to Ph.D.s. It’s amazing how quickly people pick-up the paradigm and start to apply it: “That’s Single-Minded,” “That’s Mindless,” etc.

By the way, Mindful Marketing isn’t about agreeing on the ‘right’ answer; it’s about giving people a common framework for discussing important moral issues and encouraging ethics conversations that otherwise won't occur.

Every week, hundreds of people read the Mindful Matters blog through posts in social media like Twitter and LinkedIn, and MindfulMarketing.org gets thousands of page views each week from people around the world. In addition, Mindful Marketing periodically receives other publicity, such as a presentation at the American Marketing Association’s Marketing & Public Policy Conference and opinion articles:
- What Super Bowl ads can teach entrepreneurs about marketing
- Here's what Super Bowl advertisers need to do to win the big game

What’s most motivating is the positive feedback users often offer, such as one student who said:

“I love how accessible and interesting it was. It made all of the concepts in class much easier to relate to, as it showed a real-life application of those concepts. I also liked having a simple model to work from; I will definitely be thinking of the matrix in the future whenever I see ads!”

Q7: What does the future hold for Mindful Marketing?
A7: The big audacious vision for Mindful Marketing is that the paradigm will became part of every marketer’s decision-making: Each time they develop a new strategy or tactic, they will ask if it’s both effective and ethical, in other words, “Is it Mindful Marketing?”

For this vision to take shape, it will mean many more people playing active roles, e.g., using the Mindful Matrix in their classes and businesses, writing articles, and providing leadership in other ways that I haven’t even imagined. That’s a good segue back to the survey and my request . . .

I would love to hear your thoughts about Mindful Marketing, including ideas that might help Mindful Marketing more effectively fulfill its mission and realize the vision I just described. When you're able, please complete the brief survey that’s available through the following link:
MindfulMarketingSurvey2017

Thank you in advance for your input and for sharing the desire to see more “Mindful Marketing.”

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Tinder-garten

9/9/2017

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

It’s great to watch kids grow and mature, for instance, as they take their first steps, attend their first day of school . . . have their first hook up?! Most parents don’t want to imagine that last experience, especially if their children are still young; yet, some companies are making meeting apps that many are calling “Tinder for Teens.”

If you’re not familiar with Tinder, that’s not a bad thing. It’s one of the seemingly hundreds of dating apps that have hit the market over the past few years, helping people find significant others. However, there are big differences between Tinder and some of the more traditional dating sites.

For instance, eHarmony users answer a lengthy set of probing questions, aimed at finding one’s true soulmate, which takes over an hour. The cost for one month is $49.95. A Tinder profile, on the other hand, is free at the basic level and takes only a few minutes to setup: “You simply download the app to your smart phone, link to your Facebook account, choose up to six photos of yourself, and write a brief bio. That’s it!”

The use of Tinder is equally easy, and as many would say, pretty superficial. Even though bios are available “it’s all about the photos.” Users review others’ pics, and if they see someone they like, they swipe right, while everyone unattractive gets swept left. If two people swipe right on each other, the app invites them to start chatting.

This quick and easy vetting reflects the way many users regard the people they meet through the platform, i.e., users turn to Tinder to find candidates for casual sex, i.e., one-night stands, i.e., “hook ups.”

Sexual intimacy without commitment tends to end badly for people of any age. It’s especially abhorrent to encourage lascivious behavior among adolescents, who are even less cognizant of the consequences of their actions. Some teen-targeting apps are doing just that, however. What’s more, there can be other consequences for these young people that are even worse than those of casual sex with their peers.

Probably the most popular friend/dating app for teens is Spotafriend, which describes itself as “the hottest teen swiping app for meeting new friends.” The company’s website goes on to claim that it is “not a teen dating app, it’s a new way to make friends.” However, that self-assessment is quickly questioned as Spotafriend’s own LinkedIn site says: “Meet teens near you with Spotafriend, the Tinder alternative for people ages 13-19.”

But, maybe Spotafriend’s comparison to Tinder is just puffery; or perhaps it’s only referencing the more demure uses of the adult app. It’s hard to make those interpretations, however, after reading one of the featured posts on Spotafriend’s blogsite titled “5 Major Hook-Up Ground Rules.” Here are a few excerpts from the article:

“Hookups in high school and college are exciting, and can be your first real meeting with the issues of love and sex, issues that most of us don’t really understand in our teenage years.”

“If you’re just kissing, or going all the way, make sure both participants are comfortable and willing to continue with the interaction.”

“Do Whatever Makes You Comfortable”

“Many acts that people consider “hooking up” carry the risk of infectious diseases being spread from person to person.”

Unfortunately, the possibility of reckless sex with someone the same age is not the only serious risk to teens using Spotafriend. Given that the app’s parameters are “for people age 13 to 19,” there’s built-in potential for 18 or 19-year-old men, legally adults, to interact with 13-year-old girls. What’s even worse is the ease with which even older adults can access the app and join the mix.

Lisa Schmidt, a 42-year-old dating coach and matchmaker, was curiously concerned about the rise of dating apps for teens, so she decided to check-out Spotafriend. In her guest blog post on Global Dating Insights, she recounts how easy it was for her to access the app and pose as a 15-year-old girl. It was even easier for her to change her birthday once inside.

As Schmidt’s experience suggests and leading child psychologist Michael Carr-Gregg confirms, apps like Spotafriend are “‘on-line playgrounds’ for paedophiles.” Carr-Gregg adds, “All it would take is a smooth-talking paedophile to send some silky little messages to these kids and away we go.” The fact that such apps are location-based and work seamlessly with messaging apps like Snapchat makes teens all-the-more vulnerable to predators.

It’s great when people use social media to build friendships. Spotafriend’s name and promotion, however, are misleading. The app’s real aim appears to be more about helping teens “hook up,” while providing few safeguards against sexual predators. Unfortunately, many innocent young people fall victim to the appeal, making Spotafriend an example of “Single-Minded Marketing.”

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Virtue or Vice?

8/25/2017

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

When you hear “ice cream,” you probably don’t think of diet, healthy, or nutritious; rather, words like creamy, rich, and luscious come to mind. After all, most people don’t eat ice cream to be healthy or to get fit; they just want to indulge in something they really enjoy. That’s the motivation one upstart ice cream maker is tapping into, in a way like no other.

Brands like Häagen-Dazs and Ben & Jerry’s have made decadent ice cream for decades, but even they have not capitalized on the concept of uninhibited indulgence as much as Boston-based Vice Cream. As the company name implies, its ice cream isn’t just good; it’s sinful. Other elements of the company’s brand support the unusual positioning.

Most notably, the product itself is very ‘full-bodied.’ Pictures and descriptions on Vice Cream’s website illustrate various flavors overflowing with add-ins such as “stacks on stacks of mint-chocolate coins,” “rich peanut butter ice cream mixed with chopped toffee bars,” and “chunks of chocolate chip cookie dough, salted caramel truffles, and thick swirls of chocolate fudge and caramel.”

As you might imagine, those kinds of ample, rich ingredients add up to some sizeable, undesirable numbers on the ice cream’s nutritional labels. For instance, one particular flavor boasts the following stats per half cup serving: 270 calories, 15g of fat, 10g of saturated fat, 50 mg of cholesterol, and 30g carbohydrates. By the way, I wonder how many people can eat just a half cup of ice cream; I can’t.

While those “nutrition” numbers are certainly high, they aren’t unusual for indulgent desserts. For instance, a small Brownie Batter Blizzard at Dairy Queen has 440 calories, 14g of fat, and 9g of saturated fat. Those stats are puny, however, compared to desserts at the Cheesecake Factory, where a piece of Oreo Dream Extreme Cheesecake has 1,490 calories, 53g of saturated fat, and 162 carbs.

If Vice Cream isn’t setting any records for nutritional negligence, what makes it so sinful? Well, beyond its product composition, the company has decided to play upon the idea of immorality with other aspects of its branding, such as its product names and promotion. More specifically, Vice Cream has opted for the classic low-brow strategy—serving up sex, with a side of profanity.

The company’s 'sex-sells' approach starts with the names of its ice creams, which may seem innocuous, until you start to unpack and compare them. For instance, there’s “Toffee Wife,” a play on the sexist term “trophy wife,” and “Afternoon Delight,” homage to the Starland Vocal Band’s 1976 hit by the same name, which was all about making love. There’s also “Breakfast in Bed,” a flavor name that seems benign until you interpret it in context with the other monikers and you see some of the company’s additional branding.

Vice Cream’s most blatant sex appeal is through a promotional video, which is the first thing you see on the firm’s homepage and which is easily found on YouTube. The slightly less than two-minute spot features an attractive young woman, wearing a short black dress and high heels. The actress’s words and actions exude sensuality, while an enticing instrumental arrangement plays in the background.

Granted, the ad doesn’t rely exclusively on sex appeal. There’s also a heavy dose of humor that seems like an attempt to offset some of the strong sexual innuendo. For instance, the main premise of the spot is that although consumers can’t get a free sample of Vice Cream, they can call the company’s “vice-line” and listen to “virtual tasters” describe in “sumptuous detail what it’s like to eat any of our delicious flavors.”

Of course, the unambiguous reference is to phone-sex, but the silliness of listening to others sensually describe ice cream downplays that allusion. Vice Cream also tries to take the edge off the sexual imagery by showcasing one rather unappealing virtual taster, “Gary,” who gets dropped by a caller who’s not aroused by his less-than-sexy product description.

Meanwhile, there’s also a smattering of profanity throughout the promotion, as the main actress lets slide “son of a [bleep] that’s good” and “F[bleep]’n Gary.” The spot censors the specific expletives, but it’s easy to understand what she’s saying.

What should we make of Vice Cream’s unabashed approach to confectionery marketing? On one hand, the company can be commended for not putting on pretenses. Yes, there are a handful of companies striving to make 'healthy' ice cream, like Halo, but ice cream is an indulgence, and Vice Cream calls it what it is. People tend to appreciate candid communication—even if it’s a little negative, at least it’s honest.

On the other hand, Vice Cream makes gratuitous use of sex to sell its products. Unlike a honeymoon vacation or Viagra, there’s no natural connection between ice cream and sex. As many other unscrupulous companies have done, Vice Cream tries to take the feelings people have for sex and, by way of classical conditioning, transfer them to its product.

Appetites for food and desires for sex are two separate things that can be disturbing, if not dangerous, to combine. Such an artificial pairing could be especially hazardous for adolescents, who, amid surging hormones and ravenous hunger, have enough to handle separately for each biological and physiological drive.

The addition of profanity only makes matters worse, particularly when one considers that anyone with an internet connection, from nine to ninety, can see Vice Cream’s ad. Users don’t need to verify that they’re 18 or older, for instance, to enter the company’s website or to watch the ad on YouTube.

Some may argue, “But the ad is supposed to be funny.” That may be true, but couching an ad or anything else in humor doesn’t cover-up the unseemly content. The sexualization and profanity are still easily seen and heard. To think that the humor makes them okay is like believing you can call someone a nasty name, then quickly disclaim, “I was just joking.”

Vice Cream looks delicious and probably tastes great too. Those positives likely explain most of the company’s rapid growth and early success. It’s okay for people to indulge in a decadent dessert every once in a while, but it’s never okay for companies to use sex gratuitously to sell products. For this reason, Vice Cream’s ingredient list also includes “Single-Minded Marketing.”