Monthly Archives: June 2021

by | Thursday, June 17, 2021 · 7:59 am

Amazon’s Latest Buy – MGM Studios

Amazon is not a company that is content to rest on current successes. The company seems to constantly be innovating new products and technologies. And, when not innovating, Amazon loves to buy as much as its customers. The latest acquisition for Amazon is its purchase of Metro-Goldwyn-Mayer movie studio for a price of roughly $8.45 billion. While not as large as Amazon’s 2017 purchase of Whole Foods (at $13.7 billion), nonetheless it is a substantial investment that seems destined to take Amazon even further into the entertainment business.

The purchase appears to be an effort to increase its Prime Video streaming to help it compete with rivals such as Netflix and Walt Disney Co. By acquiring MGM, Amazon gains more than 4,000 films including key franchises such as James Bond and a strong TV catalog of 17,000 shows that includes The Handmaid’s Tale and more. Prime Video is an important element in Amazon’s customer retention strategy and gives consumers value to stay with Amazon’s membership program.

Other entertainment companies are not waiting around to see what happens. Discovery announced a $43 billion deal to merge with WarnerMedia after a spinoff from AT&T. Sports content also has Amazon’s attention – it signed a deal with the NFL to broadcast Thursday Night Football in 2022.

What will you watch next?

Group Activities and Discussion Questions:

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Show a news video describing the Amazon purchase: https://youtu.be/msEU9hR6YP0
  3. Which strategy is Amazon using by purchasing MGM? Why?
  4. Discuss with class: Why did Amazon purchase MGM?
  5. Which competitors will be most pressed by this acquisition? Why?
  6. Discuss how grocery retailers will compete with the combined Amazon/MGM?
  7. How can these companies market their services to compete with the company?
  8. Is the MGM acquisition a good move by Amazon?

Source: Associated Press; New York Times; Wall Street Journal; other news sources

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by | Tuesday, June 15, 2021 · 3:49 pm

Apple Advertises its Privacy Strength

Data privacy is undoubtedly an important issue of the times. With the proliferation of mobile devices, website tracking, location enabling, and the pervasiveness of social media, one can be pretty sure that one way or another we are being tracked on our devices.

Apple states “Privacy is a fundamental human right. At Apple, it’s also one of our core values.” Hmm… Even with that statement, it makes one wonder just what is happening with our activities and data. Who know what about us? What do they do with this information?

Enter powerful new advertisements from Apple that illustrates how we are being tracked. The videos show how crowded it gets when companies are tracking our movements and purchases. Great ads.

Apple’s new advertisements, “Tracked,” highlight how its app tracking transparency tool lets users opt out of letting apps track interactions. The company also has the support of privacy watchdog groups such as Privacy International. Users should get to choose for themselves which companies they will share information with about their actions.

The new tool is part of iOS 14.5. It’s simple to choose. When an app wants to follow our activities to share information with third parties, a window shows up on our device to ask for permission. If the answer is “No” the sharing stops. Good for consumers. Not so good for companies (such as Facebook and Google) that rely on tracking to see what we are shopping for in order to target its ads.

Privacy. Simple, powerful, and needed.

Group Activities and Discussion Questions:

  1. Discuss the topic of privacy and data tracking with students.
  2. What is their opinion? What is their level of concern?
  3. Show Apple’s website statements about privacy: https://www.apple.com/privacy/
  4. Show advertisements: https://youtu.be/8w4qPUSG17Y
  5. Another ad: https://youtu.be/rEWeA7qDV4k
  6. Divide students into teams. Have teams research competing phone manufacturers to see what those privacy policies state.

Source: Advertising Age; Apple; New York Times; other news sources

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by | Wednesday, June 9, 2021 · 7:55 am

Nike: “Play New” and “Toughest Athletes”

Most of the time marketers target a specific group of consumers for their products and services. Marketers can target a consumer group using a number of factors including geography, demographics, lifestyle, attitudes, and behaviors. The key is to understand the consumer group for which the products are intended. The products have to show value and benefits; the company’s advertising has to show that the company understands the needs and desires of the consumer group.

Athletics is a very large consumer group. It can have professionals, amateurs, youth, mature, various sports, and more. Nike recently launched a new campaign to appeal to people who want to try new sports but fail at them, encouraging new athletes to not give up after a few fails. For this market, there are many existing products to sell, but the mindset is different. The “Play New” campaign showcases elite athletes and professionals trying a new sport that they don’t excel at – and shows them failing at it! The campaign will be paired with a full-body Snapchat augmented reality lens customized for yoga, dancing, surfing, and boxing. All are encouraging consumers to attempt something new and uncomfortable initially.

In addition to “Play New,” Nike also launched a new campaign (along with full athletic wear apparel) geared to pregnant women and new moms. New moms are of course cast as the “Toughest Athletes” and the commercial shows international moms-to-be and moms who are flexing their athletic and maternal abilities. Additionally, the campaign will contain four guided, motherhood workouts that will be part of the Nike Run Club app.

Nike seems to identify new markets and approaches at a high rate. What other approaches could it take?

Group Activities and Discussion Questions:

  1. Poll students: What are the target markets for Nike? (Did anyone mention pregnant women and new moms?)
  2. Show the Nike video for pregnant women: https://youtu.be/_-5MGkUwe6w
  3. Show the website for Nike Maternity wear: https://www.nike.com/maternity
  4. Video for “Play new” campaign: https://youtu.be/BUvEEVq4woU
  5. Why these two target markets?
  6. What else can Nike do to encourage buying from these consumers?
  7. What other new target markets could Nike sell to?

Source: Ad Week; other news sources

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