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More than Mushrooms

1/28/2017

3 Comments

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

“Where do babies come from?”  That’s a question kids have asked for ages, but as people become further separated from their food supplies, children might be asking an even more basic question in the future: “Where does food come from?” One organization, however, has taken a creative approach to bringing food production back home.
 
Back to the Roots is a fledgling enterprise that’s made its mark with mushrooms.  No, they aren’t the ones you find in the grocery store produce section.  They’re mushrooms that you can grow at home, right in the very box in which you buy them.
 
A college course inspired founders Alejandro Velez and Nikhil Arora to spawn their business venture, which began with organic mushroom kits and has continued to grow.  In the class, the young entrepreneurs learned how mushrooms could be grown in used coffee grounds. Then some successful experiments in the kitchen of their fraternity house encouraged the duo to ditch corporate job offers and take up mushroom farming full-time.  Velez and Arora describe their business journey as follows:
“What started as curiosity about urban farming has turned into a passion to Undo Food™ and reconnect families back to where it comes from through fun and delicious ready to grow and ready to eat products.”
 
So, how exactly does the table-top mushroom growing work?  Taking a Back to the Roots mushroom kit, you slit the front plastic cover to allow air to enter, submerge the mushroom roots in water for 24 hours, place the mushroom kit in indirect sunlight, spray with water twice a day, and watch the mushrooms grow for 10 days before harvesting.
 
In 1870, almost 50% of Americans were employed in agriculture.  By 2008 that number had dropped to less than 2%. As most Americans become further removed from agricultural production, as more groceries consist of prepackaged and processed items, and as more of our time is spent indoors and in front of LCD screens, it’s increasingly easy to take food for granted.  That disconnect is especially evident among children who have never tilled soil, planted seeds, or cultivated crops.
 
True, agricultural experience isn’t critical to success in an advanced economy, but it does serve several useful purposes.  Growing food reorients one to the basics of life.  It also promotes a greater understanding of important issues such as sustainable farming and world hunger.
 
So, Back to the Roots seems to serve a valuable educational mission, but will it will spur a movement that sees significant food production return to the home-front?  Probably not.  There are good reasons why most people grow little or none of their own food:  Namely, it’s not an effective use of their time, especially when others dedicated to food production can do it on larger scales, much more efficiently.
 
Most of us live very busy lives that require us to guard our time as much as possible.  To grow some, let alone most, of our own food is impractical.  At the same time, occupational specialization allows us to serve others so they don’t have to do the things we do, provided that we can offer those services at lower costs, and thereby maintain a comparative advantage.
 
Back to the Roots does offer a small number of processed, prepackaged food items like Blue Corn Flakes and Cocoa Clusters, which reinforces the fact that individualized agriculture is unrealistic for most people.  The company also markets a few other tabletop farming options, such as its “Garden-in-a-Can,” which comes with four sets of organic seeds for growing basil, cilantro, dill, and sage. (2)  Of course, household herb gardens are pretty common place, and most people eat more than herbs and mushrooms.
 
In sum, Back to the Root’s in-home gardening products do provide a valuable experiential lesson about how things grow and they illuminate the importance of agriculture, which is especially helpful for children.  The notion of using household farming to “Undo food” is a noble one; however, it’s unrealistic to think that advanced economies will return to individualized agriculture production or that people will buy tabletop gardening products in mass.  In that light, Back to the Root’s long-term mission represents well-intentioned, albeit "Simple-Minded Marketing."


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3 Comments

Freedom for Fake News?

1/21/2017

17 Comments

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

Life is full of fake things that many people enjoy—artificial plants, imitation crab, professional wrestling—so why is fake news a problem?  Shouldn’t we embrace fake news the same way we accept many other pretend things?
 
Before tackling those questions, some context is important.  If you’ve followed real news over the past year, you know that fake news has multiplied in frequency and impact.  The recent presidential election, especially, unleashed a barrage of fake news stories that contained enough fanciful “facts” to grab people’s attention and trigger strong emotional responses, for instance:
  • “Tens of Thousands of Fraudulent Clinton Votes Found in Ohio Warehouse.”
  • “Trump to Release Secret Document that Will Destroy Obama!”
  • "Donald Trump Protester Speaks Out: 'I Was Paid $3,500 To Protest Trump's Rally.' "
 
While some have suggested that fake news stories helped swing the presidential election, others have argued that “the role of social media was overstated” and that “few Americans actually recalled the specifics of the [fake] stories and fewer believed them."
 
The debate over fake news’ impact on the 2016 election may never end; still, it is possible to identify specific cases in which fake news has led individuals to take extreme action.  On December 5, a fake news story about an alleged child abuse ring at a Washington DC pizza parlor led Edgar Welch to drive six hours from his home in Salisbury, NC to investigate.  Welch arrived at the restaurant with an assault rifle and fired several shots before police arrested him.  Fortunately, no one was injured.
 
Although Welch’s reaction to fake news was exceptional, it does exemplify why many people believe that this pseudo journalism is a growing danger for society.  Pope Francis has even spoken out against fake news, saying that the spreading of disinformation is a sin that represents “probably the greatest damage that the media can do.”
 
But why exactly is fake news bad?  As mentioned at the onset, we accept many other things that are imitations; why can’t fake news fall into those same categories?
 
A main reason is that fake news flies in the face of what news is fundamentally supposed to be--objective truth.  Newspapers and other media often have separate opinion sections in which editors and others offer their subjective perspectives on issues.  However, we expect the news itself to be an accurate and unbiased portrayal of facts—a plain and simple, “Here’s what’s  happened.” 
 
The Society of Professional Journalists expounds this standard of truthfulness in its well-known Code of Ethics, through the following specific mandates:
 
“Test the accuracy of information from all sources and exercise care to avoid inadvertent error. Deliberate distortion is never permissible.”
 
“Make certain that headlines, news teases and promotional material, photos, video, audio, graphics, sound bites and quotations do not misrepresent. They should not oversimplify or highlight incidents out of context.”
 
“Distinguish between advocacy and news reporting. Analysis and commentary should be labeled and not misrepresent fact or context.
 
Some may argue, however, that fake news doesn’t deserve to be held to these standards because it isn’t really news; rather, it’s satire or comedy.  So, fake news should carry lower expectations, as do other things that are intentional facsimiles.  For instance, people don’t buy fake flowers and expect them to smell like real flowers because they’re not real, they’re artificial.
 
The difference, though, is that fake news doesn’t openly admit that it’s artificial.  Instead, it does everything possible to look like the real thing, without ever saying that it’s not.  Most products that are simulations visibly label themselves as such, e.g., synthetic leather, imitation vanilla, etc., but not fake news.  That’s why Facebook has begun enlisting users and fact-checkers to help it identify fake news, and why a team of very bright college students has developed an extension for Google Chrome called FiB that uses an algorithm to detect fake news.
 
Few people buy an artificial plant, take it home, try to water it, and only then realize that it’s not real.  That’s partly because retailers don’t mix artificial plants in displays with live ones, use cryptic labeling, or otherwise attempt to mislead consumers.  Fake news, on the other hand, does those very things.  It intentional charts a fine line between fact and fiction.  It aims to deceive.
 
Fake news exists for a variety of reasons, but one of the main ones is that it’s profitable.  With an internet-connected computer and some web design skills, unscrupulous individuals can setup a fake news site that satisfies broad-based consumer desires for illegitimate information.  And, where there’s web traffic, advertising often follows.  All this makes for a simple yet effective business model that creates value for primary stakeholders: advertisers, the fake news purveyors, and many of the people who consume it. 

Unfortunately, as this article has already suggested, fake news does not support societal values.  Instead, by disregarding honesty and propagating lies, fake news wages war on truth—something critical to the functioning of every stable society.  Those who create fake news, or otherwise support its dissemination, should do some serious soul-searching.  More than outside intervention, such self-assessment is needed to bring an end to this destructive strain of “Single-Minded Marketing.”


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Alcohol Ads and College Athletics Don't Mix

1/14/2017

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

During the recent college football season, many debated whether or not certain players should sit out of their own teams’ bowl games--I added my argument!  In retrospect, we should have talked more about what shouldn’t have participated in the College Football Playoff--Beer.    

The semifinal games and the national championship included a unique, football-themed commercial from Mexican beer maker, Dos Equis.  In the spot, the company’s new “most interesting man in the world” carves a football out of what appears to be coconut and kicks a field goal between two giraffes, serving as goal posts.  He ends the ad with a new catchphrase:  “Stay thirsty mis amigos.”

Some may be sarcastically thinking, “So, a football game features a beer commercial—you’d better call the Associated Press!”  True, we’re used to watching all sorts of sports (e.g., football, baseball, basketball) and seeing ads for alcohol.  Often those games involve professional teams.  For good reason, the NCAA places limits on alcohol advertising for collegiate sports, but beer commercials aren’t banned.
 
The NCAA allows the advertising of malt beverages, beer, and wine provided that they “do not exceed six percent alcohol by volume,” and provided that the commercials:
  • Comprise no more than 60 seconds per hour of NCAA championship programming
  • Include the tag “Drink Responsibly”
  • Contain content deemed “respectful”

Dos Equis has 4.6% alcohol content, it’s commercial includes the “drink responsibly” disclaimer, and the ad isn't lewd or overtly disrespectful.  So, it looks like the NCAA has abided by its own policy.  At least it seems that way until one digs deeper into the Promotional Guidelines.

Although the ads conform to the letter of the law for alcohol, they really play against the overarching spirit of the policy, particularly in light of the reality of alcohol use on college and university campuses.  Consider, for instance, these other important parts of the NCAA Promotional Guidelines:
  • Ads are to be excluded that “do not appear to be in the best interest of higher education and student-athletes.”
  • The ads should support, among other things, “physical fitness, student-athlete health and safety, . . . student-athlete welfare.”
  • The ads should not “cause harm to student-athlete health, safety and welfare.”

Alcohol abuse is an epidemic in much of higher education.  Almost 60% of college students drink, many underage, and about 20% of college students exhibit behavior indicative of Alcohol Use Disorder (AUD).  Furthermore, two-thirds of those who drink engage in binge drinking, a pattern of rapid alcohol consumption that elevates blood alcohol concentration (BAC) to dangerously high levels, the kind associated with alcohol poisoning: “a serious — and sometimes deadly — consequence of drinking large amounts of alcohol in a short period of time.  The Mayo Clinic adds that “Drinking too much too quickly can affect your breathing, heart rate, body temperature and gag reflex and potentially lead to a coma and death.”
 
What’s more, the consequences of alcohol abuse are not just physical.  “About 1 in 4 college students report academic consequences from drinking, including missing class, falling behind in class, doing poorly on exams or papers, and receiving lower grades overall.”  In other words, alcohol abuse can be a major obstacle to academic success and jeopardize a student’s future career.

It’s also extremely unfortunate that alcohol abusers tend to hurt others as well as themselves.  “About 696,000 students between the ages of 18 and 24 are assaulted by another student who has been drinking.”  In addition, “about 97,000 students between the ages of 18 and 24 report experiencing alcohol-related sexual assault or date rape.”  Of course, there’s also the great risk of drunk driving accidents, miscellaneous injury, and vandalism—Remember what Olympic medalist Ryan Lochte did at a gas station in Rio while intoxicated?
 
Now, consider again the NCAA’s Promotional Guidelines and ask whether alcohol ads aired during collegiate sporting events are “in best interest of higher education and student-athletes,” “support physical fitness, student-athlete health and safety, . . . student-athlete welfare,” and do not “cause harm to student-athlete health, safety and welfare.”  It’s hard to answer “yes” to any of these questions, let alone to all of them. 
 
Given the pervasiveness of alcohol on many college campuses, its high levels of abuse among students, and the tragic consequences that abuse carries for the user and others, it’s stunning that the NCAA allows any alcohol advertising during its games.  It’s even more mind-boggling that the College Football Playoff went a step further and enlisted Dos Equis as “The Official Beer Sponsor of the College Football Playoff,” a paradoxical distinction that further propagates the false compatibility of beer and books, drunkenness and diligence, wasted-ness and wellness.

Their partnership for the College Football Playoffs has likely profited both the NCAA and Dos Equis.  Many others, however, come out on the losing end, particularly college students, who don’t need any more encouragement to engage in unhealthy and destructive alcohol-related behavior.  There’s no such thing as drinking “responsibly” for those underage or otherwise caught in the grip of “the most commonly used addictive substance in the United States.” Mixing beer with any college sport is a contemptible case of “Single-Minded Marketing.”
 
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Is Amazon Enabling Addiction?

1/7/2017

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

While scanning the news online, a headline from one of my favorite business sites grabbed my attention: “Amazon Wants to Get College Students Addicted to Prime.”  As a marketing professor who cares about college students and who has more than a casual interest in companies like Amazon, the title enticed me.  Could the nation’s biggest online retailer really be encouraging addiction on college campuses?  I had to read on.
 
The Bloomberg Business article described that Amazon has been making a concerted effort to get closer to college students, literally.  So, how could Amazon penetrate further a target market that’s already tremendously tech-savvy, internet connected, and predisposed to online shopping?  The answer involves a two-fold strategy comprised of a powerful pricing incentive and a physical presence on college campuses.
 
In terms of pricing, Amazon has cut in half for college students the cost of its Prime membership.  Prime gives Amazon users free two-day shipping on most things they buy, as well as several added benefits, including unlimited streaming of movies and TV shows, unlimited access to over 2 million songs, free video game content, and unlimited access to books and magazines on any device.  A Prime membership normally costs $99 a year, but current college students can have one for just $49.
 
Most of us are familiar with Prime, as we’ve been inundated with offers to try the program.  The other aspect of Amazon’s college strategy is even more unique: Amazon lockers on campuses.  These secure boxes allow students to pick-up their online orders, which can be quite large, at their convenience, without the worry of packages being left in the open where someone might take them.  You may have seen similar lockers at a mall or another public location near you.
 
Of course, like any business hoping to grow revenue and increase profits, Amazon wants to get closer to all of its customers.  But, why is the giant e-tailer redoubling its efforts to appeal to college students?  Although they’re a sizeable group, most of them have small or no incomes, as well as growing debt, which makes them very selective in their spending.

Well, like other consumers, college students will spend money on things they really want (e.g., movies, music, the latest technology) and that they really need (e.g., textbooks, toiletries, etc.).  Indeed, Amazon offers all of those things, but those current sales aren’t the only thing that’s driving Amazon’s college strategy.
 
The answer lies in the future.  College students may be cash-strapped now, but as they enter their careers and their incomes increase, they’ll be the leading spenders for the next 40+ years.  So, Amazon is following the same strategy that so many other retailers have taken—“Get ‘em while their young.” 

Businesses from banks to fast food take this tack, hoping that the brand choice people make in their youth will stay with them as they grow older and richer.  A Proverb even supports the same: “Train up a child in the way he should go: and when he is old, he will not depart from it” (Proverbs 22:6, KJV).
 
So, that’s the reason for the claim that Amazon is trying to addict college students.  Maybe Bloomberg meant the article title (“Amazon Wants to Get College Students Addicted to Prime”) as hyperbole; still, such a suggestion of addiction shouldn’t be taken lightly.  Psychology Today describes addiction as follows:
 
“Addiction is a condition that results when a person ingests a substance (e.g., alcohol, cocaine, nicotine) or engages in an activity (e.g., gambling, sex, shopping) that can be pleasurable but the continued use/act of which becomes compulsive and interferes with ordinary life responsibilities, such as work, relationships, or health. Users may not be aware that their behavior is out of control and causing problems for themselves and others.”
 
Since using Amazon constitutes shopping, the underlying behavior does hold potential for addiction.  However, it’s hard to support specifically that a subscription to Prime or use of Amazon lockers “interferes with ordinary life responsibilities, such as work, relationships, or health.”  Perhaps someone, somewhere has allowed those conveniences to become obsessions, but for the vast majority of people it’s doubtful that “their behavior is out of control and causing problems for themselves and others.”
 
What, then, is happening if college students and others are frequently using Amazon Prime and/or lockers?  Medical News Today sheds some light on this question by making a helpful distinction between addiction and habit:  While addictions involve behavior that people are “unable to control without help,” habits “are done by choice” and can be stopped whenever the person wants.

So, Amazon’s strategies may encourage habit-forming behavior, but it’s very doubtful that they’re addictive.  Furthermore, we all know that there are good habits and bad habits.  Getting the products one needs at low prices while spending less time, effort, and energy (including gasoline), seems like a good habit.
 
Still, isn’t Amazon through its tactics locking in these young consumers for life?  From my experience, college students are very economically-minded and adept at brand switching.  They search out new options like few others, and they don’t hesitate to pull the plug on products that underperform or otherwise fail to deliver adequate value.

Actually, I’m more concerned for Amazon: I wonder how many of these customers it can retain once they graduate, no longer need textbooks, start to repay college loans, and see their Prime membership double in price.
 
Amazon offers college students good value, including low costs and convenience, through its discounted Prime membership and campus lockers.  There’s good reason to believe that the vast majority of college students currently make the right choices about using Amazon and will continue to do so post-commencement.  While Bloomberg deserves a ‘D’ for its suggestion of addicted college students, Amazon earns an ‘A’ for “Mindful Marketing.”


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    David Hagenbuch,
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