About BrandSolutions Blogs

Every month I read many newspapers and magazines, focusing on those publications reporting trends in Branding. My goal is to identify branding trends in America through a study and analysis of the reporting of the best publications I have found that cover branding news. I also input my personal commentary and branding observations.

The publications I read and recommend are:

AdWeek Magazine - http://www.adweek.com/aw/index.jsp

Advertising Age Magazine - http://www.adage.com

American Demographics - http://www.demographics.com

BrandWeek Magazine - http://www.brandweek.com/brandweek/index.jsp

Business Week - http://www.businessweek.com

Newsweek Magazine - http://www.msnbc.msn.com/id/3032542/site/newsweek

The New York Times - http://www.nytimes.com

The Seattle Times - http://seattletimes.nwsource.com/html/home/index.html

The Wall Street Journal - http://online.wsj.com/public/us

I hope you'll enjoy reading about ethics. I warn you, the news is not good.

A quick note regarding the format of this blog. Read the following sections and commentaries as stand-alone stories.some short, some longer.

It is particularly sad to see the decline of integrity and the unethical use of branding of vices to children.

I give many thanks to the editors, writers, researchers, and reporters that wrote all of the great stories and articles below .

I welcome your own comments, insights and wisdom. Email me at cpettis@brand.com
   - Chuck Pettis

"The Bad"

'Vice' Sponsorships Raise Brand Issues
BrandWeek magazine, February 14, 2005

Casino, liquor and cigarette companies want more addicted, long-term customers. Sports stars, teams and franchises want “new revenue streams.” Branding is the most powerful way to impact attitudes and change behaviors. This is especially true for children and teenagers. The research on sports sponsorships has found that sponsorships connected to vice and addictive behavior work. More children smoke, drink, and gamble as a result of this manipulative behavioral conditioning. Bottomline, the combination of Reptilian emotional hot buttons with addictive activities is deadly.

Do we really want a world with more kids turning into smoking, drinking and gambling adults? Is this the kind of world we are willing to accept? That is why I consider it unethical for brands to link liquor, beer, gambling, and tobacco with sports, racing, famous celebrities and characters. Vice sponsorships should be banned. Brands on both sides should use their powers for good, not to perpetuate and expand unwholesome, addictive behaviors that cause personal, family, and social problems.

Related Web sites:
http://www.ama-assn.org/ama/pub/category/14329.html
http://www.ftc.gov/os/comments/tobaccocomments2/sponsorship.pdf
http://web.idrc.ca/en/ev-28821-201-1-DO_TOPIC.html

Is Marketing to Kids Ethical?
BRANDWEEK Magazine, April 05, 2004

Even as kids become more involved and influential in family purchasing decisions, obesity rates in children are at epidemic proportions. Walk down any grocery store aisle or watch children’s programs and you will see one food product after another that is heavy in sugar, fats and carbohydrates: fat-making ingredients. 95% of food commercials targeting children pitched high-fat, high-sugar foods. Businesses are putting their bottom line ahead of the health of our children. While 35% of marketing professionals in the business think youth marketing standards for ethics are lower today than in the past, 67% think their employer’s ethical standards are higher compared to other organizations.

Large Investors Call for Grasso to Leave NYSE
The Wall Street Journal, September 17, 2003

During times of corporate fraud, Wall Street has been forced to set the line for excessive compensation. NY Stock Exchange Chairman Dick Grasso’s $187.5 million in retirement compensation is too much. To be fair, each year after receiving his annual spiff, Grasso did say “I’m blessed, Thank you.” However, that gratefulness did not make up for the appearance of this symbol of corporate corruption and greed and the loss of trust and moral authority that it diminished.

Accounting Scandal Aftermath Hits Agencies
BRANDWEEK Magazine, January 12, 2004

Most ad agencies have time and billing systems wherein employees daily fill out time sheets detailing how long they worked on projects. These time sheets are the basis for the agency’s accounting and billing to clients. In this accounting scandal, two Ogilvy executives were charged with revising time sheets to inflate the reported time. Charges of conspiracy and making false claims were made that could bring the ad executives five years in prison and a $250,000 fine.

This case raises big questions of trust between clients and agencies. In the old days of the 15% commission, time spent on an account was not an issue. Now that the commission is being replaced by labor-based fees, the slack of the 15% commission is gone and auditing becomes necessary.

Agencies Face New Accountability
The Wall Street Journal, October 2, 2003

Advertising agencies generally do not want their advertising evaluated and effectiveness measured. They claim the creative process and gut instinct will produce the best results. Now, advertisers are beginning to see the wisdom in getting a second opinion, an outside authority, hold their agencies accountable, lower costs and focus more on results.

Boeing Faces CEO Dilemma
The Seattle Times, March 8, 2005

A several-week ill-timed affair resulted in Boeing CEO Harry Stonecipher's ouster and subsequent divorce by his wife of 50 years. While there are an estimated 38 to 53 million wives worldwide whose husbands are having an affair, corporate executives are now held to internal ethics policies that they have themselves created.

Corporate Scandals Hit Home
The Wall Street Journal, February 19, 2004

The public is still mad with large corporations. Corporate reputations are declining because the fraud, lies, deceptions and greed became so extreme. There is also the feeling that celebrities and rich people can cut deals and get away with things the average Joe can't. "Companies still don't get it that people do make purchasing decisions based on corporate reputation."

The Chastened Enforcers
BRANDWEEK Magazine, November 17, 2003

Corporate fraud is making accounting firms rethink their positioning and emphasize the messages of trust, integrity, honesty - "these are the words that will sell audit services." Accounting firms used to price audit services to win the client's account and then make money consulting. Now, they can't even use the word "consulting." The Sarbanes-Oxley act makes the audit committee members personally responsible for financial statements. Their risk is 1,000 times the fee they get to be on the audit committee. Plus, the audit committee, not the CEO or management team (who want ideas to improve the business) is mandated by law to make the hiring decision. Now is the time for accounting firms to go through the BrandSolutions branding process!

Dylan Acts Like a Rolling Stone, and Gets Tangled Up in 'Ewww'
Advertising Age Magazine, April 12, 2004

Anti-establishment Bob Dylan has just joined the establishment, linking his name and music to sexy Victoria's Secret lingerie. See the ad at:
http://www2.victoriassecret.com/html/popup/dylan/videoHigh.html

Bob Dylan Gets Tangled Up in Pink
The Wall Street Journal, April 2, 2004

Dylan's alleged reason for his first-ever appearance for an outside marketer? He is "eager to freshen his fan base."

The Deepest Divide: God, Guns, and Gays
Business Week Magazine, May 17, 2004

The Republicans skillfully used the "moral values" of "God, guns, and gays" to beat liberal Democrats, including John Kerry.

"The Good"

The Top Givers
BusinessWeek, November 29, 2004

Philanthropy is going “supersize.” No. 1 Most Generous Givers, Bill and Melinda Gates, gave their 2004 $3 billion Microsoft dividend to their foundation. Intel founder, Gordon Moore and his wife gave $275 million for ocean research and world-class nurse training. Many of these philanthropists share a belief that it is better to help solve social problems today themselves than pass on the money to future generations. More power to them!

The Corporate Givers
BusinessWeek, November 29, 2004

Corporations have many reasons to fund charitable causes: gives them a friendly face in new international markets; builds employee loyalty; attracts employees who want to work for a company that supports social causes; builds corporate reputation; acts as "social insurance" in case something goes wrong; and improving health care and education in developing countries ensures future consumers with money to buy their products.