Question

A few years ago, Anheuser-Busch Inc. created a new division dedicated to marketing to Hispanics and announced it would boost its ad spending in Hispanic media by two-thirds to more than $60 million, while Miller Brewing Co. signed a $100 million, three-year ad package with Spanish-language broadcaster Univision. But Hispanic activists immediately raised public health concerns about the beer ad blitz on the grounds that it targets a population that skews young and is disproportionately likely to abuse alcohol. Surveys of Hispanic youth show that they are much more likely to drink alcohol, get drunk, and engage in binge drinking than their white or black peers. A senior executive at Anheuser-Busch responded, “We would disagree with anyone who suggests beer billboards increase abuse among Latino or other minority communities. It would be poor business for us in today’s world to ignore what is the fastest-growing segment of our population.” Manufacturers of alcohol and tobacco products have been criticized for targeting unwholesome products to certain segments of the market—the aged, ethnic minorities, the disabled, and others. 1) Do you view this as a problem? 2) Should a firm use different criteria in targeting such groups? 3) Should the government oversee and control such marketing activities?

Answer 1

1)I don't view this as a problem because business will go on whether one company does or not. In fact not having a formal company selling alcohol will most likely increase bootlegging. If formal industry cant supply, then the informal industry will so it won't change much.

2)A firm cannot control behaviours and can only classify and segment people on basis of their behaviours. Certain behaviours are specific to some community and if a company is using that to its advantage, then the company cannot be held responsible for it. The company can use the criteria of targeting Hispanics since many other companies have done the same tailor-making products for certain communities.

3)The government can bring laws and have limited control over marketing activities such as not marketing alcohol or tobacco near schools and colleges. Controlling Televisions advertisement such as time slots etc. Asking manufacturers to have warning labels etc. Government must seek to change behaviors rather than control companies.