To Spend Or Not To Spend

After watching the Overspent American in class it really opened my eyes to how the standard of living is perceived through the media. I never had a thought about how the TV shows that are being watched portrayed people as ‘middle class’ when they have all of the luxuries of the rich. People ultimately get this perception that they are able to live this way because they’re part of the middle class too. People always want more and more things and in order to pay for these desires to buy they are consequently working more. The video pointed out that by the 1980’s it was projected that Americans would have a 4day work week and a leisurely lifestyle. So why isn’t this prediction true? Simple, people want more and more! In order to get more they have to increase their wages. Another option to get more “stuff” was also explored in the video and that is to acquire debt. Like the video said, ads are being shown to people who come from a variety of income levels and some people are unable to afford the ‘luxury’ item being shown to them. Marketing has definitely kept up with the trend of more is better, no matter the price. Marketing high priced items to people who do not have a large salary may actually be working however. Why else would marketers market to people who don’t have sufficient income to pay for their items? The answer could be that some people are willing to have a large amount of debt in order to keep up with the Joneses. 

Is marketing to blame for this increase in consumer spending and increase in personal debt? Or should we hold people accountable for their own decisions whether that is to spend their money or not?

In Response to Paige

I was surprised to see this video of Britney Spears and her new song. I had only heard the song before but this was the first time that I had actually seen the video. When I first read the title to Paige's blog I though that I was going to have to search even just a little to see the products that were being advertised. I was amazed at how in your face they were. Here's the video again:

In Paige's blog she asked these questions:
Do you think this is a good way for music artists to make money? There will always be product placement in music videos and movies but there are ways of doing it so that it doesn't bombard the viewer and is not obnoxious. What are some ways that product placement can be done more efficiently?  
Apparently Britney made $500,000 for placing these products in her video, so yes it probably is a good way to make money. However, there has to be a better way of placing products so that it is not so in your face. Maybe have less products that are being promoted, or do so in a more subtle way. If the products were placed in a less in your face manner would she not have made as much money? How many advertisements in one video is too much to where it becomes distracting to the viewers?

Marketing Through The Internet

I watched the clip of the Bon Iver band on the David Letterman show and I have to say I really like their music. Here is the YouTube clip to watch:

 "The Internet played a significant role in feeding people the music.... It's like wildfire [how it] spreads," Mr. Vernon

It's amazing how the fame and recognition of Bon Iver started on the internet. Marketing on the internet in today's day and age really seems like the way to go however. With so many people casually searching the web and stumbling upon new things, they are exposed to a variety of new talents, marketing strategies, advertisements, etc. On the Ellen Degeneres show she usually has people on each week that she found on YouTube who have a talent. It seems like a lot of people can get recognition via the web. Another great aspect to marketing yourself or your business on the web is that it is relatively inexpensive to do. You do not need a huge budget if you are going to post YouTube videos of yourself or blog about yourself or be a part of a social network. In fact, most of it can be done for free. Another great aspect about marketing online is that people will share their opinions of what it is you are marketing whether that is commenting on something you have posted, or blogging about it. People who are on the web actually spread what is is that you are marketing for you.

"The Internet has been like the French Revolution for the music business," says Panos Panay, founder and CEO of Sonicbids

It makes me wonder if the internet can be this useful and powerful for musicians, can it be equally as useful for businesses? Can Mike Vitone use this to helpp get recognition of Campus Mom?

In Response To Kristen

J.C. Penny going green?

This reminds me of our discussion in class about social responsibility. J.C. Penney may be trying to go ‘green’ out of a social responsibility to be good to the environment, or they may being going ‘green’ in order to attract more customers. Either way I feel like it is a good thing to be a socially responsible company. I feel that would absolutely attract a larger customer base. If J.C. Penney were to get rid of a $454 million sales opportunity they are expecting that they will make up in sales with this ‘green’ appearance. I could not see them dropping a multimillion dollar opportunity without projecting to make more than what they are dropping. I wonder if other companies have tried this technique and been profitable?

Changing Jobs, Good Or Bad?

Executives try out unfamiliar roles article in the Wall Street Journal discusses how people are being swapped into roles in businesses that they are not as familiar with. The article mainly discusses higher levels of management or chief officers who are being switched out of their job that they are comfortable with and have expertise in. The idea behind this is to introduce new ideas and a different pace into certain departments. There were examples of big and well to do companies that have tried this idea of swapping people into different jobs and departments. Walt Disney in 2010 swapped their CFO and their Head of Parks and Resorts. Tom Staggs CFO, commented on the idea of being switched by saying:

"will bring you more ideas for change when you're the new guy," Mr. Staggs says. And "I see people in my old organization under Jay that are showing increased energy."

This idea of swapping positions was successful in Walt Disney; however it was not as successful with the GM Company. Mr. Preuss was promoted to an operational role in GM. He barely had one year working with the company as the head PR man and was moved to an operational role. This was done because the chief executive wanted to “challenge some of the conventional thinking". However GM’s latest CEO was not satisfied with his work in the new position.

I think that experience level, personality, and adaptability all have an impact on whether or not a person will be successful in a role that they do not have expertise in, or background in. Could a manager be good at a job that they are thrown into without any expertise? What does it take for a person to adapt and be good at a new job or to new tasks?

No One at The Theatre? How will Movie Companies React?

"The number of movie tickets sold in North American fell 7% in 2010 to 1.3 billion from more than 1.4 billion in 2009" -Motion Picture Association of America.

"Even more worrisome is the precipitous decline in DVD sales. At $7.8 billion, last year's level was 43% below the 2006 peak of $13.7 billion" -IHS Screen Digest data

People just aren't as willing to go to the movies or to go to the video store to rent a movie. There are so many more convenient and less expensive ways to view different kinds of media today. NetFilx is a widely used and convenient way to watch movies by getting them sent to you in the mail. Another way is Pay Per View which shares the convenience of NetFlix. Movie prices have raised in order to keep up with the lack of demand, this is ultimately drawing people away from going to the movies. So how are movie companies overcoming this problem? They are trying out a variety of strategies. One strategy includes the use of sequels. Because there was a first movie to the sequel there will not have to be near as much promoting the movie and ultimately would be cheaper. Some sequels that were and are expected to be successful are Toy Story 3, Pirates of the Caribbean, Scream, Mission Impossible, and Transformers. Another way that these companies are overcoming the lack of sales is to incorporate items to the movies that could be sold such as toys for Toy Story 3. Another way is to incorporate the use of franchises in order to overcome lack of sales. Another idea is to appeal their media overseas. I personally have noticed that I am not going to movies or renting them anymore, I wonder how companies can appeal to people who have found cheaper and more convenient ways of watching media?

In Response to Britney Perkins

If Wal*Mart is selling milk for $3.00 per gallon and your local farm is selling milk for $5.00 per gallon, which milk do you purchase?

When everything else is equal I completely agree I would buy the $3 dollar milk from Wal-Mart just like Britney. I also agree that companies should be socially responsible and I would like to say I would support a more socially responsible company over an unethical one.Supporting local farmers who are being ethical is a more optimistic choice rather than buying from Wal-Mart who does not have the same ethical standards in animal treatment.

Why do you think Wal*Mart has been so successful when they have been criticized about so many socially irresponsible aspects of their company (paying women lower wages, sweatshops over seas, child labor over seas, poor animal conditions, etc)?

To answer Britney's last question I can see how people would still buy the cheaper milk. Even if people want to support local farmers and an ethical company, some people just cannot afford to. An extra $2 for milk and an extra $2 for fruit and an extra $2 dollars for vegetables adds up! In today's economy where the unemployment rate is still high Wal-Mart strives to serve people who cannot afford other products.