Starbucks, green for profit or the environment?

One of my favorite companies of all time is Starbucks. I love their themed holiday drinks and overall feeling of comfort they exude. With that said, Starbucks is so much more than a coffee company; they truly care for the wellbeing of others and try to do their part when it comes to corporate social responsibility.

Starbucks’ mission statement is as follows: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. More than that, Starbucks’ company values include but are not limited to dignity and respect, inclusive culture, challenging the status quo, being present, and above all, holding yourself responsible.

First and foremost, Starbucks prioritizes the health and wellbeing of their employees and customers. When COVID-19 first started spreading, Starbucks management provided partner (employee) benefits that included no involuntary layoffs, food and beverage allowances, expanded childcare support, expanded mental health support, and so much more. As stores began reopening, the company even allowed for unpaid leave without losing other earned benefits.

Before the pandemic, Starbucks was a front-fighter on racial and social equity for their employees, consumers, and communities. Starbucks offers an internal safe space for hard conversations and addressing heavy topics because they want to help increase understanding and bridge the gap of unnecessary cultural barriers. Starbucks is open to change, and they rely on the community to voice its concerns and wishes.

In 2020, Starbucks scored 100% on the Human Rights Campaign’s Corporate Equality Index and 100/100 on the Disability Equality Index (Starbucks Corporation, 2021). While the company is all about inclusivity, they do plan to boost diversity by 2025 with the following goals:

  1. At least 40% minority representation and 55% women in all U.S. retail stores
  2. At least 40% minority representation and 30% women in all U.S. manufacturing roles
  3. At least 30% minority representation and 50% women for all U.S. enterprise and leadership roles

Additionally, Starbucks aims to open 100 community stores and 200 military family stores in the U.S. by 2025 and 2022 respectively. As of 2020, they had opened 29 community, 68 military, and 9 signing (sign language) stores. Starbucks also opened 4 community stores in Asia that focus on providing educational opportunities for children and help support farming communities and young entrepreneurs. Moreover, six signing stores were opened to provide employment to those hard of hearing or deaf, furthering the effort to welcome and include all members of the community.

There have been countless efforts made by Starbucks to help restore the environment and eliminate hunger. One of the most recent efforts includes the new lids that, shockingly, many were not a fan of. On September 10, 2020, Starbucks launched a new, more environmentally friendly lid. This new product helps contribute to the company’s goal to reduce single-use plastics and packaging. This new rollout was to help eliminate one billion plastic straws globally per year. This new wide-lipped lid uses nearly 9% less plastic than the old lid and straw that was the standard for iced drinks (Starbucks Corporation, 2020). As not everyone appreciates this new style of lid, straws are still available upon request.  

While Starbucks publicly strives to do good, some of their methods have been questionable. In 2018, Starbucks did not answer a questionnaire regarding their ethical reporting. There were numerous mentions of specific efforts on their website but no timeline as far as crating a more sustainable agricultural system for providing coffee beans, nor was there any mention of the impact of transportation on the environment. Furthermore, Starbucks’ rating on animal rights and factory farming was impacted as they were found to sell factory-farm animal products, and those animals were believed to consume genetically modified animal feed (Starbucks Corporation, 2022). While factory farming isn’t illegal, it’s not a great socially responsible business practice. As far as politics, Starbucks has been quiet with their country-by-country financial reporting. While this non-disclosure doesn’t necessarily suggest tax avoidance or excessive directors’ compensation, it is questionable as Starbucks claimed to improve transparency; so, what are they hiding?

References

Starbucks Corporation. (2022). Ethical Consumer. https://www.ethicalconsumer.org/company-profile/starbucks-corporation#:~:text=Animals,the%20Ethical%20Consumer%20rating%20system.

Starbucks Corporation. (2021, April). Global environmental & social impact report. Starbucks 2020 Report. https://stories.starbucks.com/press/2015/starbucks-mission-and-values/

Starbucks Corporation. (2020, September 10). Starbucks announces rollout of new strawless lids throughout U.S. and Canada. Starbucks Stories & News. https://stories.starbucks.com/stories/2020/starbucks-announces-rollout-of-new-strawless-lids-throughout-u-s-and-canada/

Starbucks mission and values. (2015, December 15). Starbucks. https://stories.starbucks.com/press/2015/starbucks-mission-and-values/

Marvel vs DC

In the classic age-old battle of Marvel vs. DC, it appears Marvel has become the top-dog following Phase One of the Avengers collection. Marvel strives to build the Universe, leaving Easter eggs in each new movie and series they release. Marvel characters also generally follow the theme of man trying to achieve high power through science or magic, whereas DC primarily focuses on mythical beings and gods. As for aesthetics, Marvel tends to keep to the light and colorful whereas DC leans darker and graver. Personally, I find it hard to rewatch DC movies because they are so dark. I want to be enamored with the hero, not bored watching them.

With each Disney+ update, it seems like Marvel grows significantly whether it be through increased consumer engagement or by the content available to watch. Marvel is playing the long game with their strategy; they’re introducing new characters and building a backstory for each power-player. The glimpse into the hero’s lives, to see how they became what they are, is a way for the audience to identify and sympathize with the character. Growing attached to characters means fans are going to continue watching because they are invested in what happens next. Not only that, but each new release ultimately keeping the big picture alive. References are made to past stories, reviving the excitement from the original release. This is the main reason I prefer Marvel over DC, and I believe the same for many consumers.

Marvel utilizes a multi-channel strategy where they can collect user data to tailor an individualized experience for the viewer by offering recommendations on what to watch next. Not only that, once Disney can determine who is watching what, they can promote new movies and help boost ticket sales with the excitement. Additionally, Marvel has begun promoting their mobile games via advertisements on Disney+.

With Marvel continuously dominating the market, DC has tried various marketing techniques to keep up. DC has chosen to chase the individual success rather than building an integrated universe like that of the MCU. One of DC’s major flaws is the missing ‘wow’ factor from its movies. They introduced multiple characters at a time, giving little time for the audience to grow attached before taking them off screen again. When the Avengers was released, fans already held love for Ironman, Captain America, Thor, and the other heroes from watching their character-building stories. When DC released Batman vs Superman, fans went crazy over the tension between their two favorite heroes. While this venture was successful, DC failed to recognize the importance of character build-up; and ultimately decided to throw a whole team of new characters together, forming the Justice League.

The best way for DC to gain more market share would be to almost copy Marvel’s integration methods. It will not be an overnight success but building the company’s brand through content development and public relations could help DC as much as it did Marvel. Additionally, DC could introduce a tiered goal list for projects and budgets. Doing this would help dictate which story arcs are used, and make sure they’re used at the appropriate timing. Lastly, DC could benefit from not announcing movies or casts until it’s in production, or very near finished. DC has a habit of getting the audience excited for a new venture, like Henry Cavill returning to his role as Superman, only to rip the rug out from everyone’s feet. DC has limitless potential; they just need the right crew in charge.

References

Elias, B. (2017). Marketing superheroes: marketing strategy lessons from the Marvel v. DV rivalry. cglife. https://cglife.com/blog/marketing-superheroes-marketing-strategy-lessons-marvel-v-dc-rivalry/#:~:text=In%20a%20head%2Dto%2Dhead,compelling%20%E2%80%94not%20to%20mention%20profitable.

Outlaw, K. (2022, August 8). how to build a better DC movie and TV universe. Comicbook. https://comicbook.com/dc/news/how-make-dc-films-movie-universe-better-explained-why-kevin-feige/

Sherman, L. (2017, May 25). marvel: adopting a multi-channel loyalty strategy. SATOV. https://satovconsultants.com/marvel-adopting-multi-channel-loyalty-strategy/#:~:text=Through%20their%20multi%2Dchannel%20loyalty,provide%20a%20tailored%20loyalty%20experience

Under Armour: Where Do We Go From Here?

The text defines market segmentation as the process of dividing the market into smaller, more defined categories of needs and wants. Under Armour identified the market that needed an alternative to sweat-soaking cotton, thus they created the breathable, dry-fit material. Additionally, Under Armour targeted women who were criticized for something they often have no control over, their body shape, yet had the mental strength to push themselves rather than give into societal pressures.

When implementing segmentation strategies, it is important to consider the affects the campaign can have on sales. Celebrity endorsements are great as everyone want to be or be with that celebrity, but if they have skeletons in their past, they can negatively impact the campaign and turn customers over to competing brands. Word of mouth is another large marketing tactic, for myself included. I rely heavily on peer recommendations, and Social Media is an ever-growing tool for just that. While social platforms are an easy way to spread information quickly, they also pose a threat by showing any and all negative reviews and experiences. People may feel strongly about a topic, but the most they will take away from that advertisement is the heightened emotions, not the name of the brand or the newly launched product.

While launching new product lines, it is important to consider the demographic makeup of the market. While a product may be advertised by professional athletes or movie actors, it is essential to make it affordable as nearly two-thirds of Americans live in the middle class. Not only that, but methods of advertising are also dependent on the age of the market. I would love a new Apple Watch, but my grandmother wouldn’t even know how to turn it on.

Geographic location also plays a large part in market segmentation. Marketing for a product such as snow tires is only helpful in places that get large amounts of snow like Michigan, Utah and Washington but are useless in states like Florida and Alabama.

Consumer behavior is another important factor when implementing segmentation. Analyzing trends is a huge part of boosting company sales and introducing new products. Being able to determine where the company is losing money can pave the way to product improvements, ultimately boosting customer satisfaction.

Consumer Who? Consumer You!

The first post-purchase behavior I exhibit is excitement for my new items. I love using them and telling my friends about my newest find. However, once the excitement dwindles, I feel one of two things: either appreciation for my new handy tool or complete remorse for the money spent. If I can return an item when I can feel the latter, it almost gives me a sense of relief. As I do live on a budget, my retail therapy isn’t always a good thing. I do feel better at the time of the purchase, but as soon as I leave the store, I begin to stress about being even more short on money and how I will have to make up for it. I like to say I self-sabotage, and unfortunately this is an instance where I tend to prove myself right more often than not.

I am very much an individual consumer, but I moonlight as an organizational consumer. On an individual bases, I purchase groceries, fill my car with gas, pay utilities and often spend way too much money on Amazon’s abundance of random things I have no business buying. However, for my role at wok, I purchase soda for the vending machine, plastic utensils for the break room and even help run fundraisers that repurpose goods.

At home, I try to buy multi-use, environmentally friendly items such as reusable bags and bowls, sturdy utensils, and even glass storage containers. I am not too concerned with brand name items so long as they fit this criteria. In fact, I tend to buy low-cost items that provide the most use. My buying decisions are often influenced by media and personal recommendations. I am pretty risk adverse, so I often get frustrated when I spend more money than I intend on a product that I end up disliking. Because of this, I tend to ask for recommendations on certain items or brands through social media or simple Google searches. I primarily shop on Amazon or at Meijer (a mid-western supermarket) and Target. I have been on a contactless shopping kick, so I LOVE the Target and Meijer pick-up options, and of course having Amazon orders dropped right at my door.

I work for a corporation, but our Wellness Committee is very involved with providing healthy snacks and planning family events as a form of employee appreciation. Consequently, I try to buy low priced items as the company has 1000+ employees and a limited fund for Committee use. As a committee, we also try to establish prize items for parties that are low-cost yet appreciated, such as a bundle of flowers or a $10 gift card. For work items, I typically shop at places like GFS, Walmart and Costco where I can buy in bulk, for less.

While I like to imagine I stick to my very strict budget, I also have to admit that I am an impulse buyer. If I see something I like, it’s nearly impossible to convince myself I don’t need it. I run through mental scenarios where the item would be extremely useful, and ignore the background thought that I will only use it once and then it will collect dust. I also have more buyer’s guilt than I’d like to admit, so I usually end up returning items a week or so later. However, I also have terrible short term memory, so I may forget to actually return products only to find them in my car six months later.

Marketing research and design play a large part in my decision making. While I do buy random things, I do so with specific intentions for those items. Marketing research is the process of defining a problem, determining the research design, designing methods of data collection, producing samples and collecting data, analyzing the data, and finally creating recommendations. The primary reason I buy something is for its practicality, and getting samples or a cheaper version is my go-to when trying something new. When I see a new kitchen gadget like a tea strainer or sink trash can, I hesitate spending any more than a few dollars for something that I am unsure will work. When I am buying something, especially online, I look at customer reviews and pictures to determine the quality and functionality of that item. I may go against my better judgement and order something I am unsure of, but I put that down as an experiment for a future investment.

Marketing design is an important factor for helping me remember just about everything. If I need something from the store but forget to make a note, it’s more than likely I will forget about the item entirely unless I see a picture of it in the store. Jingles also play a large part in decision making as I can remember company names like Safelite for automobile window replacements and 254-POOP if I need my septic pumped. I don’t rely on marketing design when making a purchase, but it does help influence my decision, even more so if there is comedy involved.

The first post-purchase behavior I exhibit is excitement for my new items. I love using them and telling my friends about my newest find. However, once the excitement dwindles, I feel one of two things: either appreciation for my new handy tool or complete remorse for the money spent. If I can return an item when I can feel the latter, it almost gives me a sense of relief. As I do live on a budget, my retail therapy isn’t always a good thing. I do feel better at the time of the purchase, but as soon as I leave the store, I begin to stress about being even more short on money and how I will have to make up for it. I like to say I self-sabotage, and unfortunately this is an instance where I tend to prove myself right more often than not.

Preliminary Findings: Free Clean Wipes by P&G

P&G is notorious for personal care and hygiene products. As the Free Clean Wipes are the first product in the home goods market, getting this product in front of the right audience is of utmost importance. Brand recognition won’t be hard to establish, but it is product reliability consumers are most likely to be concerned with. This new product would be an internal weakness as P&G has never introduced a cleaning product of this nature. While the company is certain innovation is the cornerstone of their success, P&G is still conscious of external factors. 

P&G publicizes their intent to “improve the lives of the world’s consumers, now and for generations to come” (P&G, 2022). Procter & Gamble strives to improve day to day life in small, meaningful ways by following five strict core values: integrity, leadership, ownership, passion for winning and above all, trust.

With this second round of COVID outbreaks, industry trends are still showing a large demand for disinfecting wipes and other sanitizing products. The most affordable brands during the pandemic were often store brands like Walmart’s Equate or Target’s Up & Up, rather than name brands like Lysol or Clorox. To maximize market reach, this new line of wipes will need to be competitively priced and available both online and in brick-and-mortar locations. As many households are still feeling the financial impacts of the pandemic, sales promotions may be the most profit-driven advertisement at this time. With Global Warming being both a fore and after thought in today’s world, eco-friendly products are constantly in demand. This wipe would be entirely biodegradable and pet-safe so that the environment, including wile animals, will be safe during the disposal of this product. 

Legally, P&G could be held responsible for negative reactions in animals caused by the chemicals and agents used in this product. However, P&G is focused on improving the lives of their consumers, so any necessary research and testing would be executed and perfected before this product touches the market. Additionally, animal testing would be held to the highest standards to ensure no animals would be harmed. Disclaimers may also be necessary to ensure product safety, while addressing the risk of potential allergens. 

Some limitations I’ve encountered is accumulating accurate data following the jump in sales from the COVID-19 outbreaks. It was a struggle to establish a target market for the Free Clean Wipes; residential pet owners come in all ages and social statuses, whereas only specific organizations would benefit from this niche-oriented cleaning product. 

References

Babin, B. J., & Zikmund, W. G. (2019). Essentials of marketing research. Cengage. 

Fry, R. (2020, April 28). Millennials overtake Baby Boomers as America’s largest generation. In Pew Research Center. Retrieved from https://www.pewresearch.org/fact-tank/2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/

P&G. (2022). Policies & practices. In P&G. Retrieved from https://us.pg.com/policies-and-practices/purpose-values-and-principles/

Thompson, A. (2017, May 25). Procter & Gamble’s marketing mix (4Ps) analysis. In P&G. Retrieved from https://panmore.com/procter-gamble-marketing-mix-4ps-analysis

Procter and Gamble, Safety First

For my final project, I chose Procter & Gamble. I don’t remember hearing much of this company before, so I thought it would be interesting to research their history and how they have become a fortune 500 company.

Upon my initial search into this company, I have come to realize P&G is known primarily for personal care and health goods ranging from household cleaning supplies to feminine care products and baby diapers. 

The product I would pitch to Procter & Gamble is animal friendly, antibacterial cleaning wipes. I have two cats, and the worst part is changing the litter in the pans because I have to physically wash the pans in the bathtub so as to prevent the spread of bacteria such a e-coli or salmonella (Williams). I also have a dog, and the amount of Clorox wipes I go through to clean her mess is insane, not to mention harmful should she consume any of the chemicals. It is a whole process to get these tasks finished, and it would be so much easier with pet-safe cleaning wipes at the ready. 

This product aligns with P&G perfectly because they are known for their consumer care products, and this would also help them reach a wider range of consumers. The launch of this product would expand their market reach to those with pets or to organizations like humane societies and pet shelters, not just those searching for personal care products. 

As for the creation of this product, there will need to be research into what antibacterial products are safe for animals, and how to best trap and kill the bacteria present. The utilization of test market surveys would help analyze whether the test animals or their owners had any reaction to the product being used and determine the best method of storage for the wipes. Traditionally, cleaning wipes are stored in a circular tube to accommodate for a larger supply, but an alternative shape with a handle and possible disposal container may be more efficient in this scenario. 

Both primary and secondary research could be utilized in the creation of these wipes (McCrocklin). Primary research can help with the launch of this product to work out kinks with the specific product and storage designs. However, secondary research will help determine the best chemicals to use better attract and reduce repulsion of the felines in question as there will be more test subjects. 

Hyundai – Unethical Marketing

One of the most memorable, unethical advertisements I have seen was from Hyundai. In a time where depression and anxiety are so high, Hyundai produced an advertisement where a man attempted suicide, but failed because the emissions were so clean. This ad was created by a European company, Innocean Europe, and was not removed by Hyundai until they began receiving complaints (Herper).

The main issue with this advertisement was not the imitation of attempted suicide, but the fact that even the implication of attempted suicide can cause more suicides to take place. An example of this would be the release of Netflix’s 13 Reasons Why. Following the debut, there was an increase in teen suicides by 28.9% within the first month. Over the next 11 months, there were 195 more teen suicides than anticipated by previous trends (Schwartz).

With Hyundai’s commercial, there is zero indication that there is a suicide hotline and other resources if someone is in need of help, long-term or immediate. There is also no evidence of how the attempted suicide would affect the person’s family members, and especially how they would have reacted if it had been successful. Additionally, this advertisement had highlighted a near perfect plan for someone to copy if they had any intention of following through with such an act (Herper).

Following the disbursement of this commercial, Hyundai Motor America issued a statement noting they had no involvement with the European sister-company. They went on to mention that suicidal thoughts merit serious discussion, and should not have been given such thoughtless behavior (Herper).

In many cases, unethical SEO/SEM tactics can boost search results in favor of the company utilizing such practices. However, as soon as the search engine is made aware of that company’s actions, they are immediately banned from that index for any period of time ranging from a couple of months to a few years. Hidden text, cloaking and doorway passage are all common unethical SEO/SEM techniques to boost a company’s awareness while bringing down the competition. In the case of Hyundai’s commercial, there may not have been hidden text per se, but there was a definite hidden message regarding suicide. Innocean Europe disregarded all of their morals simply to produce an advertisement for a new car. Ethics are a simple case of black and white, if it feels wrong then it probably is. Ethical search engine practices use industry-accepted measures to boost a company’s image, but they follow the moral guidelines set by our everyday beliefs interactions. Ethical SEO/SEM techniques allow for cost-effective campaigns, provide a high level of company transparency, and greatly improves ROI in the target markets Ethical SEO).

There are more benefits to being ethical than there are unethical. It is human nature to crave a clean conscience, and Innocean Europe’s actions warranted anything but. Their actions tarnished Hyundai’s reputation, and all but destroyed their own. Had they acted with respectable intentions, they would have boosted both their image along with Hyundai’s, and would have made both of their sales goals that much more attainable. The idea of producing a car with clean emissions is revolutionary and exciting, but the poor marketing and execution immediately tainted it.

Works Cited

Ethical SEO: ethical SEO vs unethical SEO. (2019, September 12). In Great Learning. Retrieved from https://medium.com/my-great-learning/ethical-seo-vs-unethical-seo-44087306e2f0

Goldacre, B. (2013, April 25). Suicide advert from Hyundai is almost surreally misguided. In Bad Science. Retrieved from https://www.badscience.net/2013/04/suicide-advert-from-hyundai-is-almost-surreally-misguided/

Herper, M. (2013, April 25). Update: Hyundai apologizes for car ad depicting attempted suicide. In Forbes. Retrieved from https://www.forbes.com/sites/matthewherper/2013/04/25/a-hyundai-car-ad-depicts-suicide-it-is-so-wrong-i-cant-embed-it-in-this-post/?sh=1dc5db12554d

Schwartz, M. (2019, April 30). Teen suicide spiked after debut of Netflix’s ’13 Reasons Why,’ study says. In NPR Lakeshore Public Radio. Retrieved from https://www.npr.org/2019/04/30/718529255/teen-suicide-spiked-after-debut-of-netflixs-13-reasons-why-report-says

The Future of Digital Advertising

When considering the future of digital advertising, there are many developments that will influence how, and over which channels, campaigns will be executed. I can see the Alexa devices, and other AI platforms, becoming a forerunner in these future advertisements. Currently, echo dots and other similar devices are able to give data upon request, and answer off the wall questions. My favorite device as of yet is the echo show. Just last night two new recipes that had cycled through the advertisements screen without prompt caught my attention. When I asked Alexa to show me that recipe, I was given a list of similar recipe I might also like.

As each generation becomes more comfortable and dependent on tech devices, companies will have to adapt their advertising strategies to accommodate non-traditional page listings, such as mobile screens or verbal devices like the Amazon collections (Olson). Every morning, I tell my echo dot to play some sort music from Spotify. While Alexa will tell me it is a  radio based on the band of my choosing, there are frequently songs I have never heard of that filter through. More often than not, I quite enjoy listening to these new songs. This is a basic example of advancements in AI. My device is able to analyze the type of music I listen to, and then recommend new songs and artists based on my activity.  

Another significant development I expect to see will be live streaming through the use of video advertising (What is digital advertising). As people spend more time on their mobile devices, we are losing the human connection we still crave. This route satisfies the growing technology addiction each younger generation shows, as well as allows us to connect on the human level with our family, friends, and even favorite celebrities. Many businesses are advancing their ecommerce practices, and becoming more tech savvy. Facebook is an example of how entrepreneurs can advertise their business on their own terms while still generating user specific content.

There are many pages and groups dedicated to jewelry making, wood crafting, and even music production that advertise a person’s or business’s product. My own brother in law made a page for his wood working business to highlight their products and even book new clients. More and more business are using these types of platforms to host live sales and parties to share their work. One large site to sell handmade items is Etsy. I have bought many of my Christmas gifts this year from Etsy because I believe in shopping small, even if not local. While many sellers have an array of photos to display their work, I become increasingly frustrated when the photos do not show certain angles or sides of the item I am interested in. If these sellers were to post live sales or even upload videos showcasing their talents, I would be much more inclined to buy from their stores rather than visiting chains like Wal-Mart or Target to get costume jewelry or whatever I may be searching for.

Social media seems to power everything. With the transition from Vine to TikTok, Pinterest how-to’s, and Facebook marketplace, it’s a wonder why companies are still printing hard copied advertisements. Within the next five years, I foresee companies transitioning the bulk of their advertisements to social media channels (Brenner). While keyword searches are critical when finding a specific product or service, the demonstration videos and item descriptions really capture the audience’s attention. For example, the new Bissell Crosswave vacuum is going viral on all of my social media pages. When searching the item on the Bissell page, I am shown a picture and description of the vacuum. However, on my Facebook and Instagram pages, my friends are raving about the drastic difference between this machine and their experiences with Shark products and even the Roomba vacuums. In fact, their demonstration videos convinced me I needed a better vacuum myself, even if I don’t get one as high valued as the Crosswave.

Another example of this would be of a local company, EER Windows. Today I received a small magazine advertising $1000 off whole house window replacements. Upon visiting their webpage, I was given the same deal. While the paper did catch my initial interest, had I not been looking for window replacements I would have just tossed the ad in the garbage. EER is a small company, so I understand their need to boost brand awareness in the community, however they would benefit more from advertising on media pages like Facebook as they can filter listing based on location, much like their printed material.

Works Cited

Brenner, M. (2018, November 12). The Future of Digital Marketing: Predictions for 2021 and Beyond. In Marketing Insider Group. Retrieved from https://marketinginsidergroup.com/content-marketing/the-future-of-digital-marketing-predictions-trends/

Olson, L. (2018, November 14). The Future of Digital Advertising: Exciting New Trends in Emerging Media.  Deg. Retrieved from https://www.degdigital.com/insights/future-digital-advertising-trends/#:~:text=The%20Future%20of%20Digital%20Advertising%3A%20Exciting%20New%20Trends,3%20Voice-assisted%20devices.%20…%204%20Digital%

What is Digital Advertising and Getting started as a Digital Advertiser. (2019, January 31). Martech Advisor. Retrieved from https://www.martechadvisor.com/articles/display-and-native-advertising/digital-advertising-primer-martech-101/

SEO Vs SEM

SEO (Search Engine Optimization) and SEM (Search Engine Marketing) tools are incredibly helpful when trying to boost brand awareness and grow consumer relationships. They both utilize key terms to filter searches and list the companies who have invested in these tools at the top of the search results.

Organic strategies such as those present in SEO tools are incredibly helpful when trying to generate site traffic. They often provide a greater internet presence, which in turn boosts company conversion rates. While someone may visit a website, the ease of navigation and content comprehension is essential when converting those visitors into customers. Creating this new customer base goes a long way for business development and sales growth, especially if there are local stores. Taking control of SEO also helps companies monitor their target audience, content, and most importantly prevents mistakes by third parties. While SEO companies offer the ease of hands-free marketing, the flexibility of generating specific, personalized content allows companies to make adjustments as needed. A good SEO presence helps target the right audience, instead of generating general traffic that has little to do with customer satisfaction. The idea is to appear to customers in search of a specific product or service (MatchBox).

While there are many benefits with organic marketing strategies, there are also disadvantages to consider. Results with this tool are not always immediate, so a company must practice patience as search engine rankings can take weeks to update. There are also no guarantees with SEO tools; they don’t automatically create new customers, so the return on investment may not be as projected. There are many unknowns when utilizing SEO, especially when search engine algorithms change and competition may be more aggressive and competitive than anticipated. Possibly the biggest disadvantage when using SEO is that it is an organic tool, meaning paid strategies like SEM will get the prime rankings.

When SEM is cost effective, the results can greatly outweigh those of SEO. SEM can directly link the return of investment to company marketing as it offers the ability to bid on specific key word searches. Boosted site traffic is nearly instantaneous with this tool as companies pay to have their results listed first, so consumers don’t have to look past the first few results. Investment into SEM offers numerous marketing options; it can appeal to consumers based on location, results ranking, etc. Every dollar invested into this system can be controlled to maximize advertisement. Additionally, daily limits and spending budgets can be utilized to prevent overspending and manage keyword bids to optimize company ROI. Paid marketing also offers a wider variety of distribution so that ads can appear on social media sites, through search engine results, and even within webpage content (Cloud1Marketing).

When deciding to use SEM, it is important to consider whether the pros outweigh the cons for the business. SEM requires extensive expertise, organization and strategy to produce profitable ROI. Managing these campaigns is often complex and entails rigorous labor. Especially in today’s economy, ecommerce is at an all-time high, so the competition in SEM will only increase. While paid strategies may be affordable, companies with larger profit margins and budgeting will ultimately dominate the online market.

When presenting all of this information to businesses, it is important to highlight all of the benefits of using the search engine tools, while also placing significance on the potential of their failures. Clients must understand that this investment does not guarantee business success but should, in the end, boost traffic. For companies unsure of the outcome, I would recommend utilizing SEO strategies to start. This would allow clients to, essentially, dip their toe while providing sound feedback on the application of these services. Discussing the importance of key terms is essential because the search for a generic word like “apple” could pull up anything relating to fruit, Apple Inc, and possibly even the story of Adam and Eve in the Bible. Lastly, I would demonstrate the SEO and SEM tools to clients so that they are able to see the services in action so they are better able to understand how they can benefit their companies.

Works Cited

Matchbox Design Group. (2020). Pros and Cons of SEO. MatchBox. Retrieved from https://matchboxdesigngroup.com/the-pros-and-cons-of-seo/#:~:text=The%20Pros%20And%20Cons%20Of%20SEO%201%20Look,Bigger%20Picture.%20…%205%20Some%20Final%20Words.%20

The Pros and Cons of Search Engine Marketing (2020). Cloud 1 Marketing. Retrieved from https://www.cloud1marketing.com/pros-cons-search-engine-marketing/

Marketing Perspective

When reading through the transcript of 60 Minutes, I noticed two things about how marketing is used by social media influencers. The first is that these vloggers (video bloggers) have virtually no marketing about themselves, and the second being that firms approach these stars to sell products geared towards those categorized as young Millennials and Gen Z. The intent behind these pitches are to influence young viewers to buy the products their idols represent. Many followers wish to be like these stars, making them easy targets for items these celebrities claim to use daily.

The brands who approach internet stars are utilizing numerous marketing strategies. These paid advertisements are well disguised, and rely on relationship marketing as these vloggers only have influence over their followers.

Social media influencers promote all sorts of content ranging from personal items such as clothing and make up to items with more household use such cookware and cleaning supplies. There are YouTube channels dedicated to makeup tips, wardrobe makeovers, and even the most popular toys children are playing with today. Ryan’s World on YouTube is a perfect example of product marketing as both children and adults watch for the best and newest toys. Children mimic Ryan’s interests, and parents observe the qualities of the toys reviewed so as to get an idea of their functions and capabilities before their purchase. Ryan’s World has unexpectedly taken off, and Ryan is now one of the highest-paid YouTube stars. Stores such as Target and Walmart are now selling toys and apparel endorsed by Ryan. Even more so, stores make these items instantly recognizable by branding the packages with Ryan’s face.

Word of mouth is crucial in this type of marketing because the celebrities are expected to sell an item or service to the rest of the world. Without celebrity endorsement, there is no drive for a consumer to purchase any specific item, or branded item. Without the shared experience of using a certain product or service, scripted or not, consumers are skeptical whether the purchase will be worthwhile.

One recent advertisement I saw was Danielle Jonas, wife of Jonas Brothers member Kevin Jonas, promoting Cascade dish washer pods on Instagram. Her post took a comical turn when she used innuendos and humor to relate the couple’s married life to the use of these soap pods. At the end of the short video, she made a statement regarding the increase in family time due to the use of this soap. While the soap itself has very little to do with saving time, it is likely that many of her followers bought that same brand when they saw her happy and energetic in the video.

Personally, I do research and read customer reviews before I make any significant purchase. However, I am also an extremely impulsive shopper, and my brand loyalty is most often tied to companies who utilize relatable public figures, demonstrating the benefits of the product in question. If I am shown the useful qualities of a product rather than simply reading about them, I am more likely to buy that item.

All in all, I would say these internet stars are the binding element between many companies and their consumers. While this may not be a traditional method of advertising, celebrities we idolize are better salesmen than any magazine or picture on a website could ever be.

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