Chapter 2 – Marketing Ethics Marketing to children has always been controversial. Indeed, in the 1970’s, the FTC considered prohibiting all advertising to children. The federal government once again is setting its sights on marketing aimed at children. With the US child obesity rate and predicated to exceed 20% in just a few years, regulators are pressuring marketers in general, and food marketers in particular, to curb their marketing practices to children. In 2008, the FTC delivered an analysis to Congress of 44 companies’ $1.6 billion food and beverage marketing activities targeting children. A provision in the 2009 omnibus spending bill signed into law by President Obama created the Interagency Working Group on Food Marketing to Children. This group will present recommendations to Congress in 2010 regarding marketing to children and aged 17 and younger. With children and teens spending billions of their own dollars and influencing much more of their parents spending, this is an important market segment to marketers.

1. Studies report that children view more than 20 food ads each day, of which over 90% promote high fat, high sugar products. The marketing concept focuses on satisfying consumer’ needs and wants, but are marketers crossing the line when they cater to younger consumers’ wants for products that may counter parental wishes or that may be unhealthy?

2. What actions are marketers taking to market their products to this market segment more ethically? Discuss industry initiatives that help marketers market to children more responsibly.

Place the following into the above Strategy Portfolio Matrix for prior to COVID19 and again for during the COVID19 pandemic.

Office supplies, xray machines, personal protective equipment, laboratory supplies, food supplies and accessories, mobile devices (laptops, phones), ventillators, doctor and nurse surgical uniforms, repair parts for hospital air conditioning and heating systems, vending machine snacks and beverages, hospital beds, hospital room furnishings, needles/syringes/IV solutions, general drugs, hospitals consultants, auditors.

1. Case Study 1: Government Intervention

In Germany in 2009 there was considerable debate about the extent to which the government should be intervening in the economy. For example, its citizens were worried about the future of Opel, a German car brand that was part of the ailing General Motors. Some wanted the government to make sure jobs were saved no matter what. Others, however, were more hesitant and worried about becoming the government becoming too interventionist. Traditionally since the Second World War the German government has seen itself as a referee in market issues and has avoided trying to control parts of the economy. It would regulate anti-competitive behavior, for example, but not try to run many industries. However, in the recession of 2009 when the economy was shrinking the government was forced to spend more to stimulate demand and had to intervene heavily to save the banking sector from collapse. The government also had to offer aid to businesses to keep them alive.

Questions

1. What are the possible benefits of a government intervening in an economy?

3. What prompted greater intervention by the German government in 2009?

4. What would determine whether the German continued to intervene on this scale in

the future?

a) Explain how the Breon Woods System worked and how it differed from the Gold Standard. Then explain how it collapsed.

What are the impacts of COVID-19 on Trade Up/Bulk product sales for supermarkets?

“Over the Years, Markets have become global. But now the Protectionist policies of the USA and the COVID -19 Pandemic threatens the global value chains.

Elaborate your answer with a relevant examples.

Evaluate the mortgage market today (2020). Do you believe the Federal Reserve will increase interest rates in the next 2-3 months? Why or why not?

Give some recommendations for the organization to take actions for its future growth. Provide reasons for your opinion.

How have some grocery store product categories such as Trade Up/Bulk items benefited from COVID-19?

Amidst the current pandemic, how can supermarkets adjust their supply chain/logistics strategies on groceries product categories such as trade-up/bulk items?

Identify and discuss the role and responsibilities of 6 Government departments involved
in the management of Coronavirus

How should supermarkets adjust their strategy for grocery product categories such as Trade Up/Bulk items in light of COVID-19?

What product flow metrics should retail markets analyze when assessing the impact of COVID-19 on grocery product categories such as Trade Up/Bulk items?