market kids

7/30/2019 Market Kids

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Papers Point-Counterpoint Marketing to kids Ethics & strategy Course Evaluation


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Questions

What advertising to children are you aware of?

What behaviors as a child can you recall beinginfluenced by ads?

What is your attitude toward child advertising?

How much TV or radio do your kids attend to?

Identify areas of unacceptable manipulation and abuse;what is the ethical violation?


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Kids aged 3-11 compriseabout 36 million potential

customers who havepurchasing power of over$18 million

By 2010 they will have$21.4 billion in disposable

income Annual expenditures for kids by 2010 will reach about $140 billion for

consumer goods (e.g., clothing, food, personal care items)

Elementary children spend around $28-billion per year and influenceanother $500-billion of spending controlled by their parents (Lynn, 2000).

http://promomagazine.com/research/kidsspending/


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What drives shift to youth purchasing power?

kids exert more influence on parent buying decisions

smaller family size, dual income, postponing children until have higherdiscretionary incomes

splintered families means more gift giving

kids in single parent families mature faster, making purchases a yearbefore other kids

grandparents spend more latchkey kids need more entertainment

striving for early childhood learning (Little Einstein)

guilt for time not spent with kids

parents ceded power to kids beginning in the 1980s

kids more assertivemore pester power parents want kids to be accepted

good parents through their kids

values of materialism

kids as collectors

building brand name loyalty


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Kids believe they have purchasing power


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Booming Baby Media

Baby Genius

Baby Superstar

Bilingual Baby

Baby Laureate Jumpstart Baby

BabyWOW!

Baby Einstein

Series works from the understanding that classical music combined with stimulating

images can enhance a baby's intellectual development. Videos combine music withlive and animated visual accompaniment. For children ages 0-4.

What are the ethical issues here?


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An 8 year-old Korean girl wasasked to make a drawing

about shopping. Note herpresence in the store amongother shoppers, attention todetail (e.g., shoppers, clerk,special prices, variety offixtures, shopping bags, etc.)


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TV for Infants & Toddlers:What are the opportunities?

Children 6 and younger spend an average of two hoursa day with screen media

75% of children six & younger live in homes where TVis on half the time, and 33% in homes where is oncontinuously

33% of children


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TV marketing to kids:The dark side of marketing?

Most children watch an average of 3-4 hours ofTV/day, 28 hours/week: the #1 after-schoolactivity for kids aged 6-17

Each year kids spend 900 hours in classrooms;1500 hours in front of TV

They view about 58 messages on TV daily, half about food

By age 70, most people will have spent 10 years watching TV

By the end of elementary school kids witness 100,000 violent acts &8,000 murders (doubles again by end of high school)

Prime time contains about 5 violent acts per hour compared with 26

per hour during Saturday morning childrens TV

Kids who watch more violent TV tend to behave more aggressively, beless sensitive to others, are more fearful, and prefer violententertainment

Kids see more than 20,000 commercials each year; I million by age 21


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Most children do not understand that the purpose of advertising is tosell a product and are more likely to believe claims

Teens see 100,000 alcohol commercials before they reach drinking age

the number of advertisements viewed by children had grown from30,000 to 40,000 messages per year over the last decadeand most of

those were for food.

Kids who watch 4 hours or more of TV/day spend less time on schoolwork, have poorer reading skills, play less well with friends, and havefewer hobbies

Hyper-caffeinated drinks are the best selling items in groceries ($10

b/yr) Channel One in schools has commercial-laden news casts, brand

names in math examples; kids dont distinguish news and ads

Textbook slip covers ads and school-bus bill boards

In school Zap-Me ads mine demographic data from unsuspecting kids

Dark side contd


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Commercialization of Schools


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School TV

CH 1 is touted as the leadingprovider of TV news and educa-tional programs to Americas

secondary schools; it is in 40%

of middle and high schools

There are 8 million kids in 12,000classrooms who watch commercial tv

Most shown in low income and communities of color where there isless funding for texts and other materials

Schools must air CH 1 0n 90% of days in 80% of classes

Advertising rates are as high as $200,000 per 30 sec. ad

20% of airtime devoted to political, economic, social & politicalstories; 80% to advertising, sports, disaster, weather & features.


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Internet Marketing to Kids

Twice as many children live in a home withInternet access (63%) as live in a homewith newspaper subscription (34%)

60% of kids age 8-14 have Internet access,and 76% of them use it regularly

According to Nielson/Net Ratings, in 2005Nickelodeon pulled in $9.6 million in 12monthsjust fo r web advert is ing

67% of teens and 37% of childrenpurchased or researched products on theinternet.

Kids aged 5 & older spent $1.5 billiononline

Some Internet vendors offer Web-onlydebit cards to teens, good for purchasesat an affiliated-Web site.


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http://mobileyouth.posterous.com/growing-up-and-growing-fast-kids-2-11-spendin


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"Brand marketing must begin withchildren. Even if a child does not

buy the product and will not formany years... the marketing mustbegin in childhood. (James McNeal,The Kids Market, 1999)

"The entertainment companies ...look at the teen market as part of

this massive empire they'recolonizing. (Robert McChesney, TheMerchants of Cool, 2000)

"Advertising has always soldanxiety, and it certainly sells anxietyto the young. It's always tellingthem they're losers unless they'recool. (Mark Crispin Miller, The

Merchants of Cool, 2000)
http://www.askzen.com/Images/smoking_kid.jpg


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Philip Morris: Todays teenager is tomorrows potential regular customer, andthe overwhelming majority of smokers first begin to smoke while still in their

teens. . . The smoking patterns of teenagers are particularly important to PhilipMorris.

RJ Reynolds: Evidence is now available to indicate that the 14-18 year oldgroup is an increasing segment of the smoking population. RJR-T must soon

establish a successful new brand in this market if our position in the industry is

to be maintained in the long term.

Brown & Williamson: Kools stake in the 16- to 25-year-old populationsegment is such that the value of this audience should be accurately weighted

and reflected in current media programs . . . all magazines will be reviewed to

see how efficiently they reach this group.

Lorillard Tobacco: [T]he base of our business is the high school student.

U.S. Tobacco: Cherry Skoal is for somebody who likes the taste of candy, ifyou know what Im saying.

Internal Marketing Strategy Memoranda
http://www.askzen.com/Images/smoking_kid.jpg


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Not going up in smoke: Tobacco Marketing

Although the tobacco companies lose about5,000 customers daily (1,200 die), replacementsare kids

90% of smokers begin before age 21; 60% beforeage 14

US companies spend $15.1 billion per year ($41 million daily) to promoteproducts; marketing efforts increased 125% from 1998-2003

The use of Joe Camel propelled Camel cigarettes from a brand used byboys)

80% of teens consider advertising influential in decision to smoke

In 2000, $59.6 million spent on advertising brands in youth orientedmagazines


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Per capita smoking in developing world has >70% in

last 25 years In Hong Kong children as young as 7 years old are

addicted to cigarettes

The teen smoking rate in some Latin AmericanCities is 50%

In Kenya, 40% of primary school children smoke After the entry of US tobacco companies, Korean teen smoking rose from

18-30% in one year

Marlboro controls 60% of the youth market but only 25% of adult market

30% of kids own at least one tobacco promotional item (cap, t-shirt, etc.)

Teens are 3x as sensitive to advertising as adults to cigarette ads

Nearly 16% of high school boys are users of smokeless tobacco

Ethics vs. Profit for Shareholders
http://www.strangepersons.com/images/content/12068.jpg


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82 percent of youth (12-17) smokers prefer Marlboro, Camel and Newport threeheavily advertised brands. Marlboro, the most heavily advertised brand,constitutes almost 50 percent of the youth market but only about 38 percent ofsmokers over age 25

A study in theAmerican Journal of Public Health showed that adolescents whoowned a tobacco promotional item and named a cigarette brand whose

advertising attracted their attention were twice as likely to become establishedsmokers than those who did neither

A survey released in March 2005 showed that kids were more than twice as likelyas adults to recall tobacco advertising. While only 26 percent of all adults recalledseeing a tobacco ad in the two weeks prior to the survey, 56 percent of kids aged

12 to 17 reported seeing tobacco ads A study in the Journal of the National Cancer Institute found that teens are more

likely to be influenced to smoke by cigarette advertising than they are by peerpressure

A study in the Journal of Marketingfound that teenagers are three times assensitive as adults to cigarette advertising

A number of studies have demonstrated therelationship between tobacco marketing and youthsmoking behavior:

http://tobaccofreekids.org/research/factsheets/pdf/0008.pdf
http://www.strangepersons.com/images/content/12068.jpg


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The big question: Whatare the marketingprinciples and practices

used with kid market thatmake them so effective?


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AMA Code of Ethics
http://www.marketingpower.com/live/content435.phphttp://www.marketingpower.com/live/content435.php


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Marketing Ethics

Marketing ethics is

accused of being anoxymoron why wouldthis be?

What are marketing ethics?

AMA Code of Ethics

Why are they important?

To what extent are ethics discussed in your

organizations marketing efforts?
http://www.marketingpower.com/live/content435.phphttp://www.marketingpower.com/live/content435.phphttp://www.marketingpower.com/live/content435.phphttp://www.marketingpower.com/live/content435.php


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http://www.math.duke.edu/education/ccp/materials/postcalc/predprey/pendulum.gif

market kids

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