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Sick and Healthy "Viral Marketing"

3/21/2020

15 Comments

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

Difficult times bring out the best and worst in individuals and organizations.  You’ve likely seen some of each during recent days.  Although it’s frightful to find our world battling a pandemic, it’s a healthy occasion to diagnose what is and isn’t Mindful Marketing.
 
One of the ‘sickest’ cases has involved two entrepreneurial brothers from Tennessee.  When Matt and Noah Colvin heard of the first U.S. death from coronavirus, they quickly began buying all the hand sanitizer and antibacterial wipes they could find—around Chattanooga, across Tennessee, and throughout Kentucky.
 
After emptying stores of the valuable virus-fighting products, they piled palettes of their pillage in a garage and began selling the items online for a premium: between $8 and $70 each for the first 300 bottles of hand sanitizer M. Colvin listed on Amazon. 

The gig lasted for about a day before “Amazon pulled his items and thousands of other listings for sanitizer, wipes and face masks” and “eBay soon followed with even stricter measures.”  The retailers’ swift actions and accusation of price gouging left Colvin sitting on over 17,000 bottles of sanitizer he couldn’t sell, even as people around the world were desperate to get their hands on the products and the product on their hands.
 
Was Colvin “profiteering from a pandemic,” or were Amazon and eBay unnecessarily constraining capitalism?  Colvin claimed he provided a “public service” by exploiting market inefficiencies and redistributing products to other parts of the nation where they were needed more. 
 
Could he be right?  Perhaps he was improving the supply chain.  Also, how different were his actions than someone making a significant purchase of a publicly-traded stock with the hope that their big investment will help push the security’s price upward?
 
First, it’s safe to assume that national and regional retailers like CVS and Walmart, with decades of logistics experience and cutting-edge supply chain processes, didn't need Colvin to help get products to places in the country where they’re in short supply.  Furthermore, any person with an internet connection could conceivable buy hand sanitizer online and have it shipped directly to them, no matter where they live.
 
Second, there’s a big difference between playing the stock market and ‘playing the hand sanitizer market,’ especially in the face of a pandemic.  People don’t need to own Apple, Tesla, or any other specific stock; however, Individuals do have to have products that can help them avoid contracting a serious illness that could kill them or someone they might infect.
 
The Colvin brothers’ actions were the epitome of “Single-Minded Marketing,” which quickly turned “Mindless” once Amazon pulled the plug on their online sales.  Such blatantly selfish actions are pretty easy to diagnose, but what about the wide continuum of tactics other organizations have employed amid the outbreak?
 
Some emails that have hit my inbox within the last few days seem tone-deaf to health advisories that have asked us to forgo nonessential services, to practice social distancing, and to be extra careful with hand hygiene.  Although less extreme than those of the Colvin brothers, these tactics also seem “Mindless”:
  • Groupon: specials on Swedish massage, axe throwing, ice skating, and even “group bowling”
  • Local Flavor: offers on experiences such as billiards, salt room, and climbing walls
  • Bed Bath & Beyond:  promotional copy reading, “Put a spring in your hosting game with fresh and EXCLUSIVE picks”; “Dazzle guests without breaking a sweat (or the bank)”
  • Old Navy: ad image showing two women walking with arms wrapped tightly over the other’s shoulders while smiling at each other, with faces about eight inches apart
 
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Meanwhile, certain other companies have shown healthier situational awareness by quickly adjusting their marketing communication from “Mindless” to “Mindful”:
  • Coors: pulled its “Official beer of ‘working’ remotely” spots that lampooned the nation's annual loss of productivity during March Madness
  • Hershey: removed ads that featured people shaking hands and hugging while sharing candy.
  • KFC: pulled its ‘finger lickin’ ads in the UK
 
There’s also been an abundance of vibrantly “Mindful” correspondence from companies aimed at calming our anxieties by describing what they’re doing to keep employees and us safe:
  • Enterprise: “Aligned with guidance from health authorities, we are implementing additional measures to clean and disinfect our locations and vehicles.”
  • Chase: “We've ensured that our branches, including ATM screens and keypads, are cleaned daily with EPA-approved disinfectants and we have hand sanitizer available in our branches.”
  • Best Buy: “The first [goal] is to protect our customers, employees and their families. The second is to do the best we can to serve the millions of Americans who are looking to us for increasingly vital technology tools to stay connected, as well as household necessities.”
  • Office Depot: “We’ve reinforced existing Office Depot policy encouraging employees who exhibit flu-like symptoms to stay home and consult with a medical professional.”
 
Finally, a few firms have ascended to the highest level of corporate health and community consciousness by going above and beyond what might be expected even for “Mindful Marketing,” for instance:
  • U-Haul is offering 30 days of free self-storage to students who need to move due to coronavirus.
  • Highmark Blue Shield has waived all copays, deductibles, and coinsurance for 90 days for those with telemedicine access “because the safest place for you if you’re sick is at home.”
  • Wiley is providing instructors and students who do not have an online learning solution free access to its courseware for the remaining spring 2020 term.
  • Martin’s Famous Pastry Shoppe has increased production of its popular potato rolls and other bread products in order to keep stores stocked during periods of intense demand.
 
To unpack the last example, there are few things as anxiety-inducing as walking into a grocery store during a crisis, only to find shelves empty of bread, which may be the most staple of foods for Americans.  However, people living in areas where Martin’s distributes can still find its products on their store’s shelves every day, even on Sunday.  Scott Heintzelman, vice president of finance and administration for Martin’s explains:
 
“Almost no commercial bakeries deliver [Sunday]. However, our awesome bakery and transport teams have been working around the clock to make and move truckloads of extra product to our warehouses.  The result is on Sunday morning, many of our amazing distributors and sales teams are out making deliveries to help feed people.  I am truly humbled by our team members.”
 
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As a writer, I should disclose that Martin’s is a faithful supporter of Messiah College, where I teach.  Also, Heintzelman, who I call “Scott,” was my college roommate, the best man in my wedding, and still a best friend.
 
During this moment of nearly unprecedented uncertainty, many people probably feel like Martin’s and other firms that have gone above and beyond to meet important, life-sustaining needs are their best friends.  It’s times like these when we really need friends, and when we can be especially grateful for organizations that practice “Mindful Marketing.”


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15 Comments
Kyle G
3/21/2020 11:14:37 pm

I think that the 2 brothers from Tessesee who bought tens of thousands of hand sanitizers and wipes were selfish but smart. I am all for making an extra dime and being resourceful and taking advantage. But I also think that it might be slightly immoral. I think that it was not right of Amazon or eBay to strip these products because it cuts into capitalism.

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Jocelynn Flores
3/24/2020 01:28:18 am

Yes, what they did was smart, but for them to go back and re-sell for their benefit. At a time like this, everyone needs the supplies they over bought on purpose. I am all for making money in a new way, but to make money unethically is not okay.

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Katelin I
3/22/2020 03:46:38 am

Just as a person's character is best determined by their response to challenges, businesses show their true colors when responding to the Covid-19. This is a HUGE opportunity for brands to build loyalty by going the extra mile to accommodate the new needs of their consumers, whether that be college students needing books and storage spaces or working adults needing more access to wifi and flexible service bills. I know that Redshelf is also offering free online access to students for the rest of the semester to help with the transition to home! Those that choose only to supply for their own needs and remain ignorant opt to suffer long-term loss by approaching business as usual.

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Sam S
3/22/2020 04:10:11 pm

It is interesting to see the unethical way of gauging people. But on the other hand, seeing amazon or eBay put to an end of the mindless action is an ethical move. I also find it interesting to see the marketing tactic organization does based on the external environment. Lastly, I am also pleased to see that organizations like u-haul are going beyond to help the community during the time of difficulty.

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David W
3/22/2020 06:39:21 pm

The importance of doing any form of business with ethics and prioritizing others rather than self was demonstrated through this article. During this time of chaos, it is essential for companies and consumers to be mindful of those around them. The two individuals that utilized people's fears to make profit was irresponsible and disregarded human dignity as they wanted to exploit people. Moreover, this time calls for organizations to further accommodate their consumers as the times have changed their needs and preferences.

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Anna
3/23/2020 04:04:56 pm

Price gouging is an absolutely awful and selfish thing to do. I think that this pandemic is showing the true colors of many ugly companies and people. Some companies are rising to the top with their ethical decisions and careful marketing and others are failing miserably because of their greedy nature.

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Michael Graham
3/23/2020 04:09:57 pm

Quite the timely article, interesting to know where all the hand sanitizer had gone. But it was encouraging to see the response of several large firms to the pandemic. Putting the customers first not as people to gain profit from but as humans who needed help in the midst of this chaos.

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Somy C
3/23/2020 05:50:29 pm

Amazon and eBay responded well to the price gouging situation. If Colvin’s actions were not blocked, this would have encouraged other people to also mass buy products, causing the public to panic. Other companies like KFC, Chase, Best Buy, and Office Depot were mindful of the situation and their actions reflected how much their company cares for their customers. Just from reading what each company did in response to this pandemic, I could feel the sense of responsibility and trust.

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Brandee Padilla
3/23/2020 06:23:57 pm

The Colvin incident is absolutely awful and I'm glad that Amazon and Ebay prevented them from continuing their business. In a business like mindset, do I think the actions of Amazon and Ebay were unnecessary? I don't know. But morally speaking, I am happy with their decisions because profiteering off of this pandemic is a horrible idea. I'm glad that aside from single minded marketing there are still companies practicing mindful marketing like U-Haul. I guess the topic that this article brings to the surface is ethics and its importance and value in business.

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Jocelynn Flores
3/24/2020 01:10:32 am

What the Colvin brothers did was very unethical. Especially during a time like this. Then to go online and re-sell the items for a higher cost to benefit themselves was a bad move altogether. It is good Amazon and Ebay stopped this right away. Now the brothers are stuck with their greediness.

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Michael Martinez
3/24/2020 01:31:10 am

This is a very interesting and illustrative example of mindful/mindless marketing. I saw the news article on the price gouging and Amazon's response which I believe was appropriate. This flies against laissez faire but I believe their actions were more of a public service.

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Andrew Lopez
5/5/2020 11:11:24 am

I believe that the two brothers who bought all of the hand sanitizes and tried to capitalize off of such a high demand was very greedy. Its not like its a new pair of jordans that no one has yet. Hand sanitizer is a very vital tool to help prevent the spread of COVID. People who already are in less fortunate income sector might already struggle buying a regular hand sanitizer, and it would be hard for them to spend more money on an everyday product. If it was truly a public service, they would have bought the sanitizer and then donate it immediately, not after they can't make money anymore and without being grumpy about having no one to sell it to.

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Iron link
8/11/2020 02:31:07 am

Thank you for the well-explained information. It's really helpful that there are articles like this to help how we handle it. Keep sharing

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Hunter Kennedy
10/27/2020 07:20:28 pm

This blog was extremely beneficial to read and especially everything that is happening all around the world it brought to light so mand interesting facts. The part mentioned about the two men from Tennessee who bought a plethora of hand sanitizers were selfish, but they also took this as an opportunity to sell a product under their name. In all reality it was extremely selfish to those who need the hand sanitizer and now have to pay above market value for a product that 50% cheaper a week prior. I am all for entrepreneur trying to make a name for themselves and see a profit but doing so unethically will make any logical person lose respect of their business plan. Seeing that other major companies put an end to the unethical business that were using their platforms shows that they mad an ethical decision. This article brought to light how some people will try to taunt people and force them into a corner when one needs an essential product. This blog was helpful to see how it is so beneficial to be ethical when marketing.

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Elizabeth McCurdy
2/1/2021 04:29:30 pm

This is a great example of a scenario where the actors technically did not step outside of any legalities in their actions, as they were simply taking advantage of the free market, but still faced consequences for their actions. Just because it was legal to buy out all the hand sanitizer does not mean that it was right to do so, and the platforms that they tried to sell them on recognized that they should not be encouraging such immoral behavior. It is also important to factor in the fact that the product in question was necessary, if not life-saving, in the midst of a global crisis, which I believe to be the real reason their actions were pushed into "unethical territory." Had they done something similar with the latest entertainment fad (like the Fidget Spinner boom of 2017), I don't believe they would have faced as much back lash, if any, even though their intentions would have been the same.

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