Culture Shift In Gender-Specific Play

 

"Construction toys for girls, once a well-intentioned but unsuccessful part of the toy market, are blossoming. Small toy makers littleBits, GoldieBlox Inc. and Maykah Inc. are marketing products they say can bolster spatial skills, which recent research has linked to degrees and careers in these disciplines."

Researches show that spatial skills are directly connected to the ability one has in math and engineering. Boys have higher spatial abilities than girls. Spatial skill "it is one of the largest cognitive sex differences," says David Lubinski, a professor of psychology at Vanderbilt University; and parents collaborate to this difference when they reinforce gender- specific play. New researches show that spatial skills can be improved with practice, and that building toys can positively impact girl's math and engineering skills. Upon this finding, small and big toys companies are investing heavily in this opportunity to extend their product line to girl's friendly construction toys. Not pink blocks, but storytelling construction toys. For years the toys industry didn't explore this market because they didn't understand their consumers. I couldn't care less to build pink blocks when I was growing up, but I loved to play with my cousin's Legos because we added stories to the construction play. However, I never owned my own Lego because they didn't offer the features the society labels for girls toys. This new research is a great opportunity for the shift in culture belief. Both boys and girls can play with kitchen toys, doll, constructions toys, and toy car.

Source:http://online.wsj.com/article/SB10001424127887324504704578411194039125724.html?mod=WSJ_hp_EditorsPicks

Is It The End Of The PC Era?

" In a surprisingly harsh assessment, IDC said Windows 8 hasn't only failed to spur more PC demand but has actually exacerbated the slowdown—confusing consumers with features that don't excel in a tablet mode and compromise the traditional PC experience."

PC companies were hopeful that Windows 8 would spur PC sales, but unfortunately that was not the reality. Windows 8 innovations failed to stimulate sale of PCs. In fact, it drove some consumers away. Consumers are confused with the new software, and they rather by tablets than upgrade their Windows 7. In addition,   business owners say that the cost of switching from Windows 7 to Windows 8 is high considering the minimal benefit gained in the upgrade. The new technology will take time to be adopted, but the drastically fall in computers' sale show that this industry need differentiation soon, and Windows 8 may be their hope.  

Source: http://online.wsj.com/article/SB10001424127887324695104578414973888155516.html

Shift In Consumer's Demand

 

"Microsoft's tablet ambitions, combined with planned price breaks for its flagship software and updates in coming months to its Windows operating software, paint the picture of a company trying to move more quickly than ever to counter urgent threats to its $75 billion software empire"

Technology companies need to be flexible regarding their marketing strategy to accommodate the fast changing in consumer's demand. Microsoft introduced the Surface tablets in order to compete in this new market. After external analysis Microsoft realized that it needed to introduce a smaller version of its current Surface Tablet to compete with Google 7- Inched Nexus and Mini iPad. The company will introduce a 7- Inch Tablet at the end of the year. There are also indication that the company plans to break prices for its Windows and Office software as part of a strategy to spur lower-cost touch-screen devices enabled by its Windows software. Microsoft is transitioning from a software maker to a "devices and services" company. With this new denomination Microsoft aims to maintain market share and diversify its product mix since the sales of computers and laptops have decreased drastically threatening the existence of the company. The demand for personal-computer is  changing and so it is Microsoft core businesses. 

Source: online.wsj.com/article/SB10001424127887323741004578415661035812902.html   

"Quanto Mais Mariana Melhor"

Our lecture last class made me think about the extraordinary marketing campaign Coca-Cola Zero had in Brazil, and its successful impact in the social media. Coca-Cola Brazil adapted an Australian marketing campaign created by Ogilvy Sidney to the Brazilian market in 2012. This campaign has the strategy to print 150 different cans and bottles with the 150 most common Brazilian names. Everyone wanted to find their name in a can/bottle, and consequently whoever found their name posted a picture of the can/bottle on social media. I only knew about this campaign because my Facebook feeds kept telling me that a friend of mine found their can/bottle. Coca-Cola said that they are using the knowledge acquire from this campaign to adapt the strategy to other countries. I wish I could find "QUANTO MAIS Mariana MELHOR".    

Sources: http://www.thehmt.com/brazil-coke-zero-jumps-onto-mass-personalisation-trend
              http://apaixonadapelobrasil.wordpress.com/2013/01/17/the-best-marketing-campaign-ever/
              http://www.meioemensagem.com.br/home/comunicacao/noticias/2012/07/31/Coca-Zero-imprime-nomes-em-embalagens.html

J.C.Penney Buys Time

"Cash-strapped J.C. Penney Co. JCP +1.38% drew $850 million from a credit line to help fund its day-to-day operations, buying time for new chief executive Myron "Mike" Ullman to reverse sagging sales at the department store operator while it looks for ways to raise additional capital."

J.C.Penney's new CEO has a hard work ahead to gain back J.C.Penney's customers loyalty and brand equity. This article says that before borrowing $1.85 billion from its banks, Penney wouldn't have enough cash to support its operation for more than one year. In addition, the company currently has CCC+ credit rating based on S&P rating system. The changes made during Ron Johnson's leadership hurt the company's sales as well as its brand equity. Mr. Ullman is likely to continue with some aspects of Mr. Johnson's vision on creating a myriad boutique-like shops within J.C. Penney stores while going back to the old J.C.Penney's coupons and odd prices (9.99). We are all watching Mr. Ullman's next move.

Source: http://online.wsj.com/article/SB10001424127887324485004578424423870595916.html?mod=business_newsreel

Zuckerberg Is Not Only Interested In You Personal Life

"The 28-year-old Facebook Inc. chief executive is in the process of co-organizing a political advocacy group made up of top technology leaders that would push federal legislative reform on issues ranging from immigration to education"

When I read this article it made me think about the marketing strategy behind this. Facebook  has more users than any other social media website. What a better way to impact federal legislative reforms than the pressure of 1.06 billion active users worldwide*.  You must remember the equal sign campaign to support same sex marriage. It was a big hit! Having a political group formed by Mark Zuckerberg will put him in a position of leader of a new generation, and consequently, the new generation will be attractive to Facebook because they will want to support or not the cause endorsed by this group. I believe that Facebook will be around for a long time since it is often innovating itself. 

Source: om/article/SB10001424127887324105204578384781088854740.html?mod=WSJ_business_whatsNews
* data from http://news.cnet.com/8301-1023_3-57566550-93/facebook-by-the-numbers-1.06-billion-monthly-active-users/

Maybe Funny But Certainly Not Appropriate

"A top Ford Motor Co. executive formally apologized Wednesday while the auto maker's Indian advertising agency unit fired an undisclosed number of workers following a series of controversial proposed advertisements to promote Ford's Figo subcompact car."

JWT India's employee didn't have Ford's or JWT's authorization to publicize the unappropriated series of ads featuring Paris Hilton, the Kardashian sister, Italian Prime Minister Silvio Berlusconi, and  Formula One drivers Michael Schumacher, Sebastian Vettel, Lewis Hamilton and Fernando Alonso. Someone in the company uploaded the ads in a website called Ads of the World, which gives monthly awards to ads submitted by users. Minutes after, the entire web had access to the ads. It is clearly that the employees responsible for this either didn't understand the power of the internet or didn't think the ads were offensive or creative enough to make international headlines (well.. they were). The ads came in a very sensitive moment in India. The country's parliament recently approved a bill that aims to strengthen sexual assault legislation. The publicity wouldn't be so negative if India wasn't going through a very delicate moment since the horrific gang rape and death of a young Indian woman in December. The employee's of JWT that created and uploaded the ads didn't analyze the market situation and the possible consequences of their non-authorized ads. 

Source: http://online.wsj.com/article/SB10001424127887324685104578386000459196108.html?mod=WSJ_business_whatsNews

CBS expects to buy half of TV Guide Network

"CBS is expected to pay about $100 million to buy out the TV Guide Network stake held by One Equity Partners, the private-equity arm of J.P. Morgan Chase & Co. OEP owns 49% of TV Guide Network, with an option to buy another 1%. A deal could be announced as early as next week, one of the people said."

TV Guide Network (TVGN) as the name suggests has been known as source of listing for channel suffers. Since cables and satellites operators implemented interactive channel listening and programming, TVGN has lost relevance. In order to innovate and keep its position in the market TV Guide Network started offering its own programming. TVGN is not as successful as it used to be, but it is in 80 million U.S. households. TVGN's reach is very appealing to CBS, who also owns Showtime and CBS sports.  Lions Gate, who owns 51% of TVGN, hopes to see growth in the network if the deal is confirmed. It would be interesting to see what CBS would bring to the table and what would CBS gain besides market share if this deal is approved.   

Source: http://online.wsj.com/article/SB10001424127887324557804578377021176087656.html

Pope Francis Talks About Sustainability And Well-Being

" 'I would like to ask all those who have positions of responsibility in economic, political and social life, and all men and women of goodwill: Let us be protectors of creation, protectors of God’s plan inscribed in nature, protectors of one another and of the environment.' He added:  ' We must not be afraid of goodness or even tenderness.' "

In his inauguration mass as the new leader of the world's 1.2 billion Roman Catholics, Pope Francis communicated to the world his appeal to the protection of the weak, the poor and the environment. In other words, he is endorsing the triple bottom line business model - people, profit and planet.  He also mentioned that being humble and caring are not signs of weakness.  “Let us never forget that authentic power is service,” he said. “Only those who serve with love are able to protect.” In addition, he entitled each one of us to be protectors of the gift that God has given to us, including the environment we live in.  Since day one he showed to be humble by asking the people to pray for him. He should be a great example of a honest, humble and caring leader to Catholics and non Catholics all over the world.     

Source:http://worldnews.nbcnews.com/_news/2013/03/19/17367434-at-inauguration-pope-francis-appeals-for-protection-of-poor-environment?lite

I Know How She Does It

"But she is likely to find that nagging men and women to change their natures is a more daunting task than anything she does at her day job."

Sheryl Sandberg, 43 years old, mother of two young children, former vice president at Google, and current chief operating officer at Facebook wrote a new book called "Lean In". She intends to encourage women to be powerful and fearful. She believes that women are holding back their careers since women earn 57% of college degrees and 60% of master's degrees but there are still very few women in the board rooms. She wants to encourage women to go out there and behave "like man". Women are not in the board room not because of their capacity to run a business, but because many of them just don't want to. She said that once she had a question from a girl about how to balance family and work. She says that this girl was recently graduated and that she didn't even had a boyfriend yet. The society expects women to be a superhero - mom, housewife and CEO. The society says "I don't know how she does it", I know how she does it - she tried, she made it happened and she kept it up. It is not about who is better or worse or the biological difference between men and women, is about doing what you want to do and believing that you can do anything you want whether you are man or woman.  This book has had many different reviews, but one agreement among them is that she sure will find out that the task she has taken is far more challenging than anything she has done before. This book will definitely be in my "To Read" list. 

Source: http://online.wsj.com/article/SB10001424127887324735304578356643109954604.html?mod=us_most_pop_newsreel

March Madness - Who Will Be The Next Pope?

"Pope Benedict XVI, the first pope to resign in six centuries, created a very rare air in the pre-conclave period because believers haven't flocked to Rome to mourn the death of their pope."

The papal conclave to elect the new head of the Catholic Church begins this Tuesday. The election of a new pope has always been an international event, but not like it has been this time. People look at the papal race as a World Cup or a Championship. There are games in Las Vegas, brackets all over the country, and even online games that anyone can play to bet in your favorite candidate. In addition, every country is campaigning for their favorite candidate. The Nigerian Cardinal John Onaiyekan said that the president of Nigeria told him " 'they should give it to us this time'…They all say, 'We are voting for you,' and I have to tell them they're not voting." Their intention to vote do not matter. Their prayer may help, but not their vote or money. It is the "March Madness", not because of basketball but because of the Vatican. This is a historic moment and I have no doubt that there will be still many news about the March Madness of the Vatican until the next pope is elected. In the meantime people should gamble less and pray more so we can have a strong leader blessed by God to be Peter's successor. A pope doesn't only influence the way the Catholic church is governed, but he also influences the relationship among Catholicism and other religions, and how Catholics behave in the society. 

Source: http://online.wsj.com/article/SB10001424127887323826704578354131939902530.html?mod=WSJ_hps_MIDDLENexttoWhatsNewsTop#project%3DPAPABILE0213%26articleTabs%3Darticle

Electronic Dance Music

"EDM's revenues are going up, while the broader music market's are heading south. For its technologically deft fans, this is not about buying and downloading songs, it's about being there. Devices can isolate; frantic EDM-infused festivals unite." Jan 25th

Electronic dance music (EDM) events are the place to advertise if the company aim to reach Millennials and Generation Z. The EDM sound is universal. The same DJ can be understood by many different crowds. The language and culture are not a barriers for this type of music. Duch-born Tiesto, for example, has earned $22 million dollars last year as result of his international tours. He has fans all over the world. The biggest EDM promoter in the US, named Insomniac, "sold more than a million tickets last year; 300,000 people came to one three-day fest". The public that listen to this type of music prefer to enjoy the event experience rather than listen to the music alone. It is no surprise that the EDM's revenues and popularity are going up. Generations that have been connected online since birth are now looking forward to be connected in person. Marketing in this type of event is the right marketing strategy for companies that want to reach Generations Y and Z. 

High Payroll Taxes And Its Impact in The Food Industry

 

"Darden Restaurants Inc., which owns Olive Garden and Red Lobster, cut its fiscal-year profit and revenue outlook, citing "headwinds" from consumers pinched by higher payroll taxes and gasoline prices" Feb 22nd

The restaurant industry is very sensitive to the changes in the economy. Darden Restaurants, Inc. has passed through hard moments to keep their restaurant chains profitable. Customers don't go to restaurants when they don't have disposable income. To solve these problems restaurants need to elaborate their marketing strategic plan focusing in offering the best cost benefit on their food and services. In addition, they should decrease the portion size increasing revenue. It is not an easy job for a restaurant to stay in businesses while unemployment rates are high along with payroll taxes and gasoline price. Darden Restaurants needs to re-think its food marketing in order to keep its resuaturants chains profitable.

Source: http://online.wsj.com/article/SB10001424127887324503204578320140228148284.html?KEYWORDS=Olive+Garden  

The New Generation of Fashionistas

"Remember clapping? As in when a fashion designer puts on his runway finale and then takes a bow before an adoring crowd. The fashion hordes these days are way too busy tweeting, Instagramming and taking video with their smartphones to put those busy hands together" Feb 9^th 2013

Technology has inspired changes in many industries. In the fashion industry, where trend and innovations are admired by its followers, the use of smartphone to snap pictures of the shows and transmit information is more common everyday. Using their smartphones audiences can take pictures from their seats and post reviews online before the models are off the runway. The feedback is so much faster than it was years ago. Designers are developing strategies to use this fast feedback to their advantage. Donna Karan and Helmut Lang, for example, offered to people unable to attend to the event the opportunity to watch the show through phone apps. In addition, others designers offer incentives such a donation to a charity based on the times a specific hashtag( #) is used in the reviews. This is a new generation and the fashion world, more than any other industry, needs to adapt to this flat world.

Source: http://online.wsj.com/article/AP4c1a605677de40de8a5beab2ba6e43d4.html?KEYWORDS=the+sound+of+new+york+fasion+week#articleTabs%3Darticle

"Evil Empire" an insult that became a blessing

“A panel of judges in Washington, D.C., issued a ruling this month against a company called Evil Enterprises that has been trying since 2008 to trademark the phrase "Baseballs Evil Empire." The company sells T-shirts and hats that mash up familiar Yankees iconography with pitchforks and devil's tails.” Feb 23, 13

Yankees have won a legal victory against Evil Enterprises to guarantee that there is only one “Evil Empire” in Baseball. The team has used this trademark since it received the nickname from Lary Lucchino, President of the Boston Red Socks team, after Yankees signed Cuban pitcher Jose Contreras in 2002. Lucchino meant to insult the team, but Yankees used it to their marketing advantage. The team embraced the nickname and uses the slogan to promote a powerful and fearful image in the baseball league. As a matter of fact they have always played Star Wars music at home games since Lucchino’s comments. What a good way to use an insult to your advantage!

 Source: http://online.wsj.com/article/AP10e11593b23d43f8bbf85f768e6b62e6.html?KEYWORDS=%22Yankees%3A+Yes+We%27re+%27Evil%27+%22

Facebook, is my timeline safe?

 "Facebook said on Friday that it [has} been the target of a series of attacks by an unidentified hacker group, but it had found no evidence that user data was compromised." Feb 16th, 2013

Last year Facebook introduced the timeline feature to its users. Facebook's intent was that its users would add to their timeline things like baby pictures, wedding date, and personal information that happened prior to the date they joined Facebook. The company wanted users to upload all types of information about themselves so they would be emotionally attached to Facebook increasing the opportunity cost of changing social media network website. These changes increased Facebook's responsibility on protecting its users information. Last Friday, Facebook published in its blog that it has been target of a series of hacker attacks. It will probably not be the last time a hacker group attacks the social media network website. This article made me think about my personal strategy on publishing my life and my interests on Facebook. I don't post my social security number, but I certainly post my niece's pictures and my engagement photos. How much is too much? What can a hacker group do with my information? Social Media world is growing faster than our ability to protect our information.   


Source: http://www.reuters.com/article/2013/02/16/net-us-usa-social-facebook-idUSBRE91E16O20130216

Heart Attack Grill Spokesman Dies of Heart Attack

 

"John Alleman, the unofficial spokesman for the hospital-themed fast food chain [ Heart Attacked Grill], suffered a heart attack last week and was taken off life support Monday"

This story would be funny if it wasn't tragic. The theme and name of a brand are very important factors in advertising a product and service. In this case, the fast food chain "Heart Attack Grill" intends to play with the words and admit that burgers are not healthy but they are delicious. The death of John Alleman was unfortunate, but of course it made the news.     

Source: http://www.nbcconnecticut.com/news/weird/NATL-Heart-Attack-Grill-Spokesman-Dies-of-Heart-Attack--190796301.html?_osource=SocialFlowFB_CTBrand

American beer industry is half full

"The U.S. beer industry is largely controlled by two big players: AB InBev, owner of Bud Light and Budweiser, and MillerCoors, maker of the Coors Light brand. Modelo, whose Corona is the best-selling imported beer in the U.S., runs a distant third, with 7% of U.S. beer sales, according to the Justice Department. Together, AB InBev and Modelo would control about 46% of U.S. sales."

The U.S authorities seek to block the deal between Bud Light's maker Anheuser-Busch InBev with Group Modelo, owner of the Corona brand. If the deal is not block, these two brands would hold 46% of U.S. sale. The U.S decision to block these two companies to merge is a strategy to keep the beer market competitive. Furthermore, It is important to protect small beer companies interests as well since small business keep the economy healthy. They employee people and generate income taxes. Moreover, U.S. intends to avoid beer prices to increase protecting customer's interests. 

Sorce: http://online.wsj.com/article/SB10001424127887323701904578275821720321186.html?mod=WSJ_business_LeadStoryCollection

Dell goes private

"Dell Inc. DELL +0.83% on Tuesday said it reached a deal to take itself private, in a $24.4 billion buyout that marks an unofficial end to the era when a handful of young entrepreneurs made PCs the dominant computing device."

"You've gotta get up and try try try" Dell is trying, but it hasn't being easy. Despite its efforts to turn itself around, Dell recognized that will take longer to come around. Dell's decision to go private is an attempt to restructure its business maintaining its value. In order words, being private is the security that a company can innovate, try new procedures and change core business without the fear of the impact of these decisions in the financial market. In addition  Microsoft is one of the big investors of this buyout, which makes us think that maybe the technology industry will see something new coming from this partnership.


Source: http://online.wsj.com/article/SB10001424127887324900204578285582125381660.html?mod=WSJ_hpp_LEFTTopStories

Who's to blame?

This is not a post about Marketing strategy, but I needed to express my sorrow to my country, population of Santa Maria-RS, families, and friends of the victims. 
A terrible tragedy happened in Brazil last weekend; 235 people died in a nightclub fire. This tragedy is especially bitter for me not only because it happened in my country, but because I know how the regulations are and I have been in places like Kiss nightclub many times. In Brazil it is very common to receive a card which bartenders record your tab and you are not permitted to leave without your card verified by the cashier as paid. In addition, large part of the nightclubs in college towns are fill over capacity in celebratory nights, such the begging and ending of the school year. After last Sunday 235 young adults and teenagers will not go back to their family or invest their knowledge in the development of Brazil. 

Who should be accountable for this tragedy?  Based on inspections made previous to the incident the nightclub was up to code, and could be open to the public. That means that the city government standard for safety is not strict enough since 235 people died for lack of ventilation and emergency exit in the building. In addition, the fire extinguisher didn't work when needed. Nightclub owners want to sell and have profit from tickets and drinks. With this in mind they allowed as many people in the nightclub as possible, even though  possible doesn't mean safe. In addition, musicians want to be different. Clearly they didn't notice that using a pyrotechnic device in a closed and crowded nightclub would cause a problem. In addition, the ceiling was too low for a "pyrotechnic show", which is only allowed in open spaces. College kids want to have fun and be with their friends. They were not mature enough to foresee the problems until they saw the fire. Lastly, because of the Brazilian custom of paying for your card at the exit, security blocked the exit when who hadn't paid their bill wanted to leave.  Security thought that there was a fight and people wanted to leave the nightclub without paying. This action resulted in the accumulation of people trying to leave at the same time where some people fell on the floor and could never get up. As of 01/28/2013 4 people were arrested: two of the owners of the nightclub and two performers whose pyrotechnics display supposedly went awry and started the blaze.

It has been a very sad time to Santa Maria and Brazil. Maybe this tragedy helps the country to formulate better safety requirements for venues, and nightclub's owners to be more concern about security rather than profit.  

source: http://noticias.uol.com.br/cotidiano/ultimas-noticias/2013/01/30/nao-vou-entrar-em-jogo-de-empurra-empurra-diz-prefeito-de-santa-maria-rs.htmhttp://online.wsj.com/article/SB10001424127887323375204578269641832825014.html?KEYWORDS=Brazil#articleTabs%3Darticle

GMO?

Watch: Real Time with Bill Maher 22 june 2012 in HD GMOs (Genetically Modified Foods)

This is a complicated business ethics issue because Monsanto claims that it is helping the 
world by supplying generically modified seeds that result in more food with increased nutritional value, which is what we need. In the book Hot, Flat and Crowded, Friedman states that the population is only increasing.  So how are we going to feed all these people? On the order hand, GMOs are dangerous because they can impact our health, environment, and our future in a way that is unknown at the current time. In addition, the genetically modified crops are seen as Monsanto's intellectual property, which means that once farmers plant GM crops they need to always come back to Monsanto. This would keep the profit on the company's hand challenging the true meaning of "sustainable agriculture". Companies' marketing strategy is to not tell if a product contains GMOs or not. They take this position in order "to protect consumers" since consumers don't know the actual negative results of GMOs and the term Genetically Modified remind us of people with three arms and one eye. That is true, but then if GMOs are not bad for our health why can't we have the full disclosure on products' labels?  The bottom line is that we, as consumers, should be able to know what are we buying and make our on decision on whether to purchase a food that contains GMOs or not. 



Source:nutribulletblog.com

What's next Apple?

"Verizon reported Tuesday that more than half of the iPhones the company sold in the fourth quarter were older models that sell at deep discounts. Dane Scism, a Verizon dealer with nearly 600 stores around the country, said many of his customers settled for the iPhone 4 and iPhone 4S, because they didn't see a value in paying up for the iPhone 5's faster cellular connection—one of the new device's marquee features."

Apple's strategy of always having the next big thing in technology has not worked well in the past few months. It appears that Apple is reaching market saturation with the early adapters. Apple devices are still the highest selling smartphone brand in the United States, but customers are settling with the older versions of the iPhone. "Apple's decision to let carriers sell its older model phones at discounts or even for free has helped get iPhones in the hands of more users". But this decision, in some cases, has also made older versions more attractive than the new versions.  I recently purchased an iPhone 4 rather than 4S or 5. Part of this is because the iPhone 4 was free with my upgrade and I couldn't justify spending an extra $100 to get the 4S or $200 for iPhone 5. The characteristics of the 4 and 4S are pretty similar except for Siri, a voice control program that does not always understand my commands. Regarding iPhone 5,  "it is a combination of lightness, thinness, performance, and beautiful design". My thought process was: well, I really like the iPhone 5, but I know that Apple will probably launch iPhone 6 soon so I am better off getting this free iPhone and waiting for the next big thing. 

Apple no longer dominates the smartphone market. Competitors are right behind Apple just waiting for the moment when Apple's products become so similar to older versions where the expense does not justify the purchase, that customers are no longer interested. Apple should reevaluate its marketing strategy to be able to keep its customers loyal to the brand and to attract new customers. What's next Apple? 


Source: http://online.wsj.com/article/SB10001424127887324539304578262360860151882.html?mod=WSJ__MIDDLENexttoWhatsNewsFifth
http://www.gizmag.com/iphone-5-vs-iphone-4s-vs-iphone-4/24351/
http://live.wsj.com/video/the-race-to-unseat-apple-as-the-smartphone-king/F1C0073B-D45D-41D7-B7DA-0D806C068835.html

Sponsor and Endorser Relationship

"USADA then did something that dismayed Mr. Armstrong's legal team: It released thousands of pages of documents from the investigation on its website, including affidavits from about a dozen former teammates, all of whom accused him of doping. Shortly after the documents were released, Nike NKE +0.94% dropped its sponsorship of Mr. Armstrong. Within a day, all of his other major sponsors had done the same. Mr. Armstrong's cancer charity, the Lance Armstrong Foundation, cut ties with Mr. Armstrong and later changed its name to The Livestrong Foundation." 

The first point of discussion here is the negative marketing associated to Armstrong's name. As soon as the USADA released documents accusing him of doping, Nike and all other major sponsors dropped their sponsorship and Mr. Armstrong’s cancer charity changed its name. It is correct to say that Mr. Armstrong’s endorsement and successful career were extremely important to the success of Lance Armstrong Foundation. His endorsement was very beneficial to sponsor's profitably during the time they were sponsoring Mr. Armstrong. The name Armstrong now represents deceit, corruption, and questionable morale. No company should want to be associated with that.

However, based on WSJ article "Former teammate Floyd Landis's allegations against Mr. Armstrong in 2010, first reported in The Wall Street Journal, kicked off the USADA investigation and a separate federal fraud probe into whether Mr. Armstrong's U.S. Postal cycling team had defrauded sponsors by using performance-enhancing drugs".The transaction between sponsor and the team was ethically legitimate. Sponsor seeks advertisement, sale and profit. The sponsored seeks money and income. The sponsors received what it was agreed: endorsement and brand recognition. Mr. Armstrong's team victories brought the name of the sponsors to the podium and to the press. I wonder if companies should be involved with USDA requirements or they should only worry about the image associate with their brand. In other words, as long as the beneficiary is wining and being "moral to the eyes of the public" the transaction is ethically legitimate and the sponsorship is fair and moral. Therefore, I believe that the transaction was fair even though the means to achieve success were deceitful.

Source:  http://online.wsj.com/article/SB10001424127887324734904578241801441261928.html?mod=WSJ_hpp_LEFTTopStories