Monthly Archives: May 2015

Advertising in China

China

True or False: Marketing in the U.S. is quite similar to marketing in China. Hmm…. Let’s think about this one. We might be more alike than originally thought.

China recently updated its advertising laws for the first time in more than 20 years (and a lot has happened to marketing since 1994). The new laws go into effect in September and will impact diverse areas including the use of celebrity endorsements, the Chinese flag, pop-up ads and more. The new laws even impact tobacco advertising, critical to companies marketing to China’s 300 million smokers. The new laws are focused on strengthening consumer protection and increase fines for any false or misleading advertising.

One new law holds celebrity endorsers responsible for false claims. Consider a recent fine levied against P&G’s Crest toothpaste, fined $963,000 or using software to whiten a celebrity endorser’s teeth. Another regulation prohibits children under 10 years old from endorsing any products. And, although the tobacco business is state-owned, the one million deaths each year caused by tobacco prompted a ban on all tobacco ads aimed at underage consumers and cannot appear in public places or in any mass media outlets.

Group Activities and Discussion Questions:

  1. Discuss ethics in marketing. What is the difference between laws and ethics?
  2. Discuss the impact of laws and ethics when marketing in different countries.
  3. Divide students into teams and assign each team a country. For each country, have the team research the regulations that impact marketing in these countries.
  4. How are these laws different (or similar) to laws in the U.S.?
  5. Should some of these foreign laws be adopted in the U.S.?

Source: Ad Age Daily

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YouTube Trends: Same for Females and Males in May 2015

Youtube

This month’s viral trends is a little unusual. In most months, there are distinct differences between the viewing habits between males and females. But, this month both genders (age 18-24) watched the same videos. Yes – this is right – the same music video of Wiz Khalifa for the movie “Furious 7” scored 96% of all female and male views. So, instead of asking what factors account for differences, we now have to ask what factors account for the same viewing habits.

YouTube posts a daily trends map based on demographics as reported by its account holders. Rankings are based on the number of views and can be separated by age, gender, and location. Through the aggregated data, YouTube Trends show us the most popular video in real time and gives ideas about trends that are developing within the YouTube viewing community. The map is a visual representation of the most viewed videos over the past 24 hours across the U.S.

P.S. – Happy 10th Birthday to YouTube! If you would like to see the first video ever posted, go to https://youtu.be/jNQXAC9IVRw. It’s come a long way in 10 years.

Group Activities and Discussion Questions:

  1. Poll students: What are the YouTube videos they watch the most?
  2. What videos do they think are more popular for men vs. women? By various age groups?
  3. Bring up the YouTube trends map: http://www.youtube.com/trendsmap
  4. Divide students into teams. Have each team select a specific target market and geography and view the most popular videos in that area.
  5. Discuss how this information can be used by marketers.

Source: YouTube.com

 

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How Much does it Cost to Make the Apple Watch?

Watch

The newest entry in the smart watch industry has finally hit the market and Apple Watch is now available for purchase. It isn’t cheap though – the watch starts at $349 for sports models, and can reach up to very pricey 18K gold special edition models at $12,000.

But let’s take a look at the costs to manufacture the product:

    • Display – $20.50
    • Processor – $10.20
    • Memory – $7.20
    • Sensors – $3.00
    • Battery – $0.80
    • Charger, box, etc. – $9.00
    • Misc. – $30.50
    • Manufacturing – $2.50
    • Total to make – $83.70Use this product as a topic for a discussion about how Apple and other companies price their products.
    • Group Activities and Discussion Questions:
  1. Start by viewing Apple Watch models: http://store.apple.com/us/watch
  2. Next, show the video: https://youtu.be/Kyec1H4eB-g
  3. Discuss the six steps for establishing a price: determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments.
  4. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  5. For the Apple Watch, divide students into groups and have each group work on any/all of the six steps.
  6. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  7. Debrief the exercise. Compare the various pricing models and discuss advantages/disadvantages of each.

Source: CNN Money, Manufacturing Business Technology

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