<ul><li>DISCUSSION QUESTIONS </li></ul><ul><li>WHY DO COMPANIES MARKET TO CHILDREN? </li></ul><ul><li>IF YOU WERE A BUSINESS, WOULD YOU MARKET TO TWEENS & TEENS DIFFERENTLY? </li></ul><ul><li>DOES ADVERTISING ON SELF-ESTEEM WORK ON: </li></ul><ul><li>TWEENS, TEENS, ADULTS </li></ul><ul><li>4) WHAT DOES EDISON SCHOOLS DO? </li></ul><ul><li>5) EXPLAIN THE “NAG FACTOR.” </li></ul><ul><li>6) EXPLAIN THE 4 TYPES OF PARENTS. </li></ul>
MARKETING -”THE PROCESS OF CREATING & DELIVERING DESIRED GOODS & SERVICES TO CUSTOMERS.” MARKETING CONCEPT -ACHIEVING ORGANIZATIONAL GOALS DEPENDS ON KNOWING THE NEEDS & WANTS OF OF TARGET MARKETS AND DELIVERING THE DESIRED SATISFACTIONS.
<ul><li>3 MAIN PURPOSES </li></ul><ul><li>IDENTIFY THE CUSTOMER. </li></ul><ul><li>SATISFY THE CUSTOMER. </li></ul><ul><li>KEEP THE CUSTOMER.* </li></ul><ul><li>*BRAND LOYALTY </li></ul><ul><li>-”DEDICATION TO A COMPANY.” </li></ul><ul><li>-A CUSTOMER’S COMMITMENT TO REPURCHASE A COMPANY’S PRODUCT/SERVICE. </li></ul><ul><li>-ACQUIRING A NEW CUSTOMER COSTS 5X MORE THAN KEEPING AN EXISTING CUSTOMER. </li></ul>
<ul><li>FACTORS INFLUENCING BRAND LOYALTY </li></ul><ul><li>PERCEIVED VALUE </li></ul><ul><li>BRAND TRUST </li></ul><ul><li>SATISFACTION </li></ul><ul><li>WHAT COMPANIES HAVE HIGH BRAND LOYALTY? </li></ul>
Yawning is a surprisingly powerful act. Just by reading the two yawns in the previous two sentences--and the two additional yawns in this sentence--a good number of you will probably yawn within the next few minutes. Even as I'm writing this I've yawned twice. If you're reading this in a public place, and you've just yawned, chances are that a good proportion of everyone who saw you yawn is now yawning too, and a good proportion of the people watching the people who watched you yawn are now yawning as well, and on and on, in a ever-widening, yawning circle. Yawning is incredibly contagious. I made some of you reading this yawn simply by writing the word "yawn". The people who yawned when they saw you yawn, meanwhile, were infected by the sight of you yawning--which is a second kind of contagion. They might even have yawned if they only heard you yawn, because yawning is also aurally contagious: if you play an audio-tape of a yawn to blind people, they'll yawn too. And finally, if you yawned as you read this, did the thought cross your mind--however unconsciously and fleetingly--that you might be tired? I suspect that for some of you it did, which means that yawns can also be emotionally contagious. Simply by writing the word, I can plant a feeling in your mind.
<ul><li>-THE TRUE ESSENCE OF MARKETING IS THE ABILITY TO PERSUADE THE CUSTOMER INTO: </li></ul><ul><li>PARTING WITH ONE OF THEIR MOST PRIZED POSSESSIONS ($) </li></ul><ul><li>PURCHASING A PRODUCT/SERVICE THAT THEY MAY NOT KNOW THEY WANT. </li></ul><ul><li>-MARKETING = SELLING & IF YOU CAN’T PERSUADE THEN YOU CAN’T SELL. </li></ul><ul><li>2 KEYS TO PERSUASION </li></ul><ul><li>SHOES: WALK IN YOUR CUSTOMER’S SHOES </li></ul><ul><li>EYES: SEE THROUGH YOUR CUSTOMER’S EYES. </li></ul>
<ul><li>Advertising directed at children is estimated at over $15 billion annually. </li></ul><ul><li>In 1983, they spent $100 million on television advertising to kids. Today, they pour roughly 150 times that amount into a variety of mediums that seek to infiltrate every corner of children’s worlds. </li></ul><ul><li>According to a leading expert on branding, 80 percent of all global brands now deploy a “tween strategy.” </li></ul><ul><li>Kids 12-19 spent a record $155 billion of their own money in 2001, up from $63 billion just four years earlier. </li></ul><ul><li>Children aged 12 and under influenced more than $500 billion of their parents' purchases in 2000. </li></ul>
<ul><li>COMMERCIALISM ON TELEVISION </li></ul><ul><li>The average American child today is exposed to an estimated 40,000 television commercials a year — over 100 a day. </li></ul><ul><li>Research shows kids under the age of 8 are unable to critically comprehend televised advertising messages and are prone to accept advertiser messages as truthful, accurate and unbiased. </li></ul><ul><li>COMMERCIALISM IN SCHOOLS </li></ul><ul><li>The American Beverage Association estimates that nearly two thirds of schools nationwide have exclusive “pouring rights” contracts with soda companies. </li></ul><ul><li>An informal survey of Channel One advertisers from a few years ago found that 27% of the ads were for junk food. The next highest category, at 10 percent, was military recruitment. Channel One also advertises movies, TV shows, and video games featuring violence, strong sexual content, and alcohol and tobacco use. </li></ul>
<ul><li>THE NAG FACTOR </li></ul><ul><li>“ PESTER POWER” </li></ul><ul><li>________________________________________________ </li></ul><ul><li>“ The degree to which parents' purchasing decisions are based on being nagged by their children.” </li></ul><ul><li>We found more products were bought when kids whined with importance rather than persistence,” Cheryl Idell, Marketer </li></ul><ul><li>According to a new national survey of youth commissioned by the Center for a New American Dream, the average American child aged 12-17 who asks their parents for products they've seen advertised will ask nine times until their parents finally give in. </li></ul>
“ Advertising at its best is making people feel that without their product you're a loser. Kids are very sensitive to that. If you tell them to buy something, they are resistant. But if you tell them they'll be a dork if they don't, you've got their attention.” - Nancy Shalek, former president of Grey Advertising -53% of Americans say that buying certain products makes them feel better about themselves. -32% of Americans admit feeling pressure to buy certain products, such as clothes, shoes and CDs because their friends have them. -62% of 12 & 13 year olds say that buying certain products makes them feel better about themselves. - 54% of 12 & 13 year olds admit to feeling outside pressure to buy products.
OPPORTUNITY IN DEVASTATION -A MARKETING TACTIC WHERE COMPANIES PREY/TARGET ON NEGATIVE ASPECTS OF KIDS’ LIVES IN ORDER TO INFLUENCE THEIR PURCHASING BEHAVIOR.
1) OBESITY -Rising levels of childhood obesity has led to an explosion of junk food ads in recent years.
2) EMOTIONAL WELL-BEING -Author and Boston College sociology professor Juliet Schor finds links between immersion in consumer culture and depression, anxiety, low self esteem, and conflicts with parents.
3) SELF-IMAGE & SEXUAL BEHAVIOR -Wheelock College education professor Diane Levin sees correlations with sexual imagery in children’s ads and increases in eating disorders among girls, adding that as “children struggle to make sense of mature sexual content, they are robbed of valuable time for age-appropriate developmental tasks, and they may begin to engage in precocious sexual behavior.”
4) FINANCIAL SELF-CONTROL -National surveys reveal that kids are leaving high school without a basic understanding of issues relating to savings and credit card debt. No surprise, then, that over the past decade, credit card debt among 18-24 year olds more than doubled.
CORPORATE AMERICA IS NOT ALL TO BLAME FOR YOUTH CONSUMERISM. SO ARE PARENTS.
<ul><li>Resist their kids' nagging and advertising. </li></ul><ul><li>They interact the least with their kids and expect to make all purchase decisions. </li></ul><ul><li>They're the oldest, richest and most conservative group. </li></ul><ul><li>About 1/3 of parents fall into this category. </li></ul>BARE NECESSITIES
KIDS PALS’ <ul><li>Like to play as much as their kids do. </li></ul><ul><li>They're the smallest and least affluent parental group. </li></ul><ul><li>They're easy to advertise to - just show parents playing with kids. </li></ul><ul><li>Chuck E. Cheese's restaurants probably appeal more to Kids' Pals than other parents who are most likely to want to play games with their children. </li></ul>
INDULGERS <ul><li>Indulgers are impulsive buyers who can't say "no" to their kids' requests. </li></ul><ul><li>1/3 of all parents are indulgers. </li></ul><ul><li>They are the second most affluent category and are very busy. </li></ul>
CONFLICTED <ul><li>Single and/or divorced parents. </li></ul><ul><li>Trying to be moderate, but guilt-driven. </li></ul><ul><li>They often cave. </li></ul>
WE ARE WORTH MORE TO COMPANIES THE LONGER WE PURCHASE THEIR PRODUCTS/SERVICES.
“ CRADLE TO THE GRAVE” -A BRANDING TECHNIQUE WHERE A COMPANY ATTEMPTS TO ATTRACT A CUSTOMER EARLY IN HIS/HER LIFE, & THEN KEEP HIM/HER LOYAL FOR THE REST OF HIS/HER LIFE.
LIFE-TIME VALUE (LTV) -THE THEORETICAL MEASURE OF HOW MUCH A HUMAN BEING IS WORTH IF EVERY MOMENT OF HIS/HER LIFE WERE TO BE COMMODIFIED IN ONE FORM OR ANOTHER. COMMODIFIED: -TO MAKE COMMERCIAL.
AGE OF ACCESS -AS A RESULT OF TECHNOLOGY, CORPORATE AMERICA HAS MORE INFORMATION ON CONSUMERS & CONSUMERS HAVE MORE INFORMATION ON CORPORATE AMERICA. -THE RESULT: THE INCREASING COMMODIFICATION OF THE ENTIRE HUMAN EXPERIENCE. EXAMPLE: FINANCIAL PLANNING -YESTERDAY: TRADED STOCKS & BONDS AND MANAGED CLIENTS PORTFOLIOS. -TODAY: HANDLES EVERY ASPECT OF THE CLIENT’S LIFETIME FINANCIAL DEALINGS. -PERSONAL BUDGETING -RETIREMENT -CHILDRENS’ COLLEGE FUND -TAX SERVICES -ESTATE PLANNING
“ BEING YOUR FINANCIAL PARTNER AT EVERY STAGE OF YOUR LIFE.” -JAMES D. SPEROS, CHIEF MARKETING OFFICER