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Marketing Ethics: Targeting Children

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Marketing Ethics: Targeting Children

The almost 24 percent of the U.S. population under 18 years old wields billions of dollars in purchasing power. Companies such as eBay and Facebook want to capitalize on those dollars—legitimately, that is. EBay is exploring ways to allow consumers under 18 years old to set up legitimate accounts to by buy and sell goods. Children already trade on the site, either through their parents’ accounts or through accounts set up after they lie about their ages. Similarly, even though children under 13 are not allowed to set up Facebook accounts, about 7.

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5 million of them have accounts, and nearly 5 million account holders are under 10 years old. That translates to almost 20 percent of U.S. 10-year-olds and 70 percent of 13-year-olds active on Facebook. Many of these accounts were set up with parental knowledge and assistance. Both eBay and Facebook say that protections will be put in place on children’s account and that parents will be able to monitor to their children’s accounts.

1. Debate the pros and cons of allowing these companies to target children. Are these efforts socially-responsible behavior?

The cons of companies being able to target children is that not all children realize what they’re getting themselves into or signing up for. Children could be signing up for things where their personal information could be let out to anyone and they don’t even realize it. The pros of companies targeting children is that they get more of an age range and are able to get more customers onto their sites. They’re gaining more information on people and it makes their company name spread out more through word of mouth the more people are allowed to access their sites.

2. Review the Children’s Online Privacy Protection Act at www.coppa.org/. Explain how eBay and Facebook can target this market and still comply with this act.

eBay and Facebook are able to target this market and still comply with the
act by asking for the parental consent. The parents would have to send a signed form by postal mail allowing their child’s information to be disclosed. They’re able to limit what is available on the site for children at the age of 13 or under. There are certain ways to avoid giving out personal information to third party sites. They also could put color code or use a bigger font as said in the website to verify the privacy notice

Starbucks
Define the marketing environment for Starbucks (www.starbucks.com). Keep in mind that a company’s marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.

Internal

External
Strengths

Opportunities

Weaknesses

Threats

Xerox: Adapting to the Turbulent Marketing Environment page 97 For many years, Xerox was synonymous for “photocopy.” And in certain respects, it still is. But that has become more of a detriment than a benefit. As new technologies quickly and dramatically reduced the need for copying hard documents in the late 1990s, Xerox found itself in trouble. This case illustrates how Xerox made some bold and difficult decisions to both cut costs and redefine the nature of its business. Today, Xerox is more about business services and solutions than it is about copying documents. With a much broader market that has various growth opportunities, Xerox has the potential to remain one of the top business-to-business corporations. 1. What microenvironmental factors have affected Xerox’s performance since the
late 1990s?

The microenvironmental factors that affected Xerox’s performance were that they failed to adapt to the new technology coming out and that they didn’t have the strong leaders to get them through the hard times. All of the other companies were going digital but Xerox stayed where they were at with producing copies. They’re economic status dropped and they didn’t have any money.

2. What macroenvironmental factors have affected Xerox’s performance during that same period?

The macroenvironmental factors had to do with their customer base. All of Xerox’s customers no longer wanted to print out stacks of paper when they could digitally hold onto their copies and access them from different locations. The customers wanted a cheaper and faster way to get their information out there. Xerox was losing all of their money to their competitors.

3. By focusing on the business services industry, has Xerox pursued the best strategy? Why or why not?

Xerox has pursued the best strategy because the company has expanded their customer base. They are creating products that all companies need to process documents and may be creating new devices. The company still isn’t perfect and running as good as it could be but the company is still growing. As said in the book, Xerox still relies on the printer and copier products but it doesn’t rely as much on them making Xerox able to rebound much quicker than competitors in the future. Xerox will continue to stay updated with the new marketing environment.

Chapter 4
Real Marketing 4.2 Caesars Entertainment
Hitting the CRM Jackpot page 121
Caesers Entertainment maintains a vast customer database and uses its Total
Rewards CRM program to manage day-to-day relationships with important customers at its casino properties around the world. 1. What “Total Rewards” data did Caesars Entertainment identified then focused their marketing insights on?

The “Total Rewards” allows customers to earn points based on what they spend their money on and how they spend their time at Caesars. They are then able to redeem their points for free play, food, merchandise, rooms, spa sessions, golfing, and show tickets.

2. How does Caesars Entertainment increase customer loyalty?

Caesars Entertainment increases customer loyalty by their Total Rewards progam. The Total Rewards card keeps track of everything the customer spends their money on and what kind of entertainment they go to. It gathers information on each customer so it can give the best offers for specific preferences to each customer. The card now analyzes the customer information within minutes of the customer using the card. The hotel clerk is able to tell the customer what they are able to redeem right when they swipe the card. The customers don’t only get notified when they walk into Caesars because they also get mailed offers based on what their Total Rewards card best suits them.

Data and Questionnaires
1. Using observational research, gather data on your roommate’s or family member eating habits. What do your findings tell you? More importantly, what do you findings NOT tell you about his/her eating habits?

2. Secondary data consists of information that already exists, having been collected for another purpose. What are some secondary data sources you might take a look at if you were helping your college or university develop a recruitment strategy?

Some secondary data sources would be going to get information at high schools. Also Facebook would be a huge hit by making a Facebook page and
gathering information on others.

3. Why would you want to (or not want to) use a mail questionnaire to reach Generation Y individuals? Give both pros and cons.

The cons of a mail questionnaire are that you’re not really sure who is answering the questionnaire. You also can’t guarantee everyone or maybe even anyone will reply to the mail. It’ll take a much longer time to get responses when it goes through the mail. The pros of mail questionnaires is that they’re cheaper and people are more apt to give honest answers. There is no interviewer involved.

4. Develop a short questionnaire (six questions) designed to determine a respondent’s favorite social media site and the reason why. Use both closed-ended and open-ended questions.

Which social media site do you prefer to use?
A) Facebook
B) Twitter
C) MySpace

What makes the social media site you chose above better than the others?

How did you get introduced to this social media site?

What is something you would change about the social media site to make it easier or better to use?

How do you access the social media site?
A) Mobile Device
B) Tablet
C) Laptop/Desktop

What do you use the site most for?

5. In reference to the questionnaire that you developed above: What do you think the results will tell you and how could a business utilize that information?

Based on the questionnaire I listed above the results would give a lot of information to a business. It would tell the information how they can make navigation around the site easier for it’s customers. It would tell the business what customers use more to access the site allowing the business to know how to change things based on the types of devices they use. They are able to tell what is wrong with the site based on customers opinions on what they would like to see changed. Also the question asking about how the customer was introduced to them will show the business how they can promote their sites.

Cite this Marketing Ethics: Targeting Children

Marketing Ethics: Targeting Children. (2016, Aug 23). Retrieved from https://graduateway.com/marketing-ethics-targeting-children/

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