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Mar 11, 2011

Can you pass the ‘ethics’ test?

Once again, the NCAA is investigating a rules infraction at a major college sports institution.  As many of you will be aware, the OSU coach, Jim Tressel is under investigation over his alleged violation of NCAA rules in failing to report his knowledge of player transgressions in selling merchandise when he was questioned by NCAA investigators.  What I’ve heard so far is that Jim, who received a relative slap on the wrist from the University, is up for much bigger slaps from the NCAA.  And just like Barry Bonds, who allegedly never knowingly took performance enhancing drugs, the truth will eventually out him and potentially permanently stain his reputation and legacy as head coach of one of the premier US college football programs.

The whole sorry saga raises an interesting point for brand and marketing management:  if you know something is ‘wrong’, how do you respond?  With that in mind, take my devious little 5 question quiz and see how you end up.

1.  You’re a lowly Assistant Brand Manager, just got the job in fact, and you take a field visit to your brand’s Far East factory.  At the factory, you uncover a number of workers who assemble your product that appear to be underage.  Do you:
a.  Do whatever you can to stop production, and try to explain to your boss and all the executives up the line why you need to stop manufacturing until the problem is resolved … along with sales, retailers, and others.
b.  Quietly start an internal investigation to stop the practice, and hope the media doesn’t get their mitts on the story.
c.  Leave the firm for the ABM job at Nike.
d.  Other

2.  You run an ad agency, part of a big network, which has hit a few financial hurdles.  You have an opportunity to get, on a plate, a huge account that will get the ‘big wigs’ at corporate HQ off your back.  It also happens to be a competitor to your largest current account – and who the new account doesn’t know you work with.  Resigning the current account in favor of the new account is a zero gain proposition – you’ll still be in the red for the fiscal year.  Do you:
a.  Take the account, try to keep Chinese walls, hope that the exec assistant doesn’t email the wrong account with the budget breakdown.
b.  Set up a satellite agency to handle, reducing profitability and potentially causing an issue with the ‘new’ account who were not aware that their major competitor was a customer of the ‘main’ agency.
c.  Walk away from the business opportunity, and risk getting hauled over the coals and losing your job over failure to hit targets.
d.  Other

3.  You’re in charge of marketing for a pharma brand which cures ED.  You read on a Facebook posting that your ED medication caused someone to lose all bodily hair.  Do you:
a.  Ignore it, on the basis that it lacks all the prerequisites of an adverse event.
b.  Investigate further, commission studies, alert management of a potential problem, and potentially pull the drug until you’re satisfied the posting was a ‘one off’.
c.  Look for the alternative marketing opportunity as an alternative to waxing or laser hair removal.
d.  Other

4.  You market a newspaper, and have seen circulation and ad revenues falling faster than Villanova’s ranking in men’s college basketball this year.  You’re approached by an advertiser for a porn empire, offering you mega-bucks which could save your publication, if you agree to feature her ads on the classified section for various chatlines, dubious websites, and other services.  Do you:
a.  Tell them forget it, and risk going out of business
b.  Accept the cash, create a classified “Over 21” section
c.  Rename yourself ‘The Sun:  USA Edition’, convert your page 3 to having a topless model, and see how it goes.
d.  Other.

5.  You run a marketing agency, and discover that the direct mail samples you sent out for a major client have a tiny error in the pack – the wrong photo was put in place.  The mailing hasn’t dropped yet, but the client is demanding you get it out ASAP as it’s highly time critical – so no time for a re-print.  Do you:
a.  Tell the client, and accept the decision on ‘go’, ‘no go, reprint’ … as well as their fury that your team dropped a ball.
b.  Keep it from the client, and dummy up some ‘correct’ samples to send to them for their records.  And hope a lot.
c.  Pull the mailing, make the correction, send the mailing … and hope the timing delay isn’t too great.
d.  Other.

Comments welcome as to how you’d tackle these challenges.  Was thinking of offering merchandise I bought at a Columbus, OH tattoo parlor, but thought better of it.

3 comments:

  1. Hi Paul,

    In my consulting business out in San Francisco, I was asked to market the sales of a high-end condominium complex on the shores of Lake Grand in Oakland. The crime rate in Oakland was a major roadblock to selling out this complex. But I felt strongly that it was beautiful place to live, and secure, especially for retirees.

    At that time, the major publications were the only path to promoting open houses and special events to draw potential buyers. I worked with my team of designers to come up with a b & w hard ad for the San Francisco Chronicle. It spoke of all the lovely features of this complex and invited everyone to come and take a look.

    Unbeknownst to me, the production department at the Chronicle had completely reconstructed our ad, and instead of saying “wall-to-wall windows”, it said “wall-to-wall widows”. Well needless to say, I panicked. I picked up the phone and reached out to Herb Caen, the sage voice of the Chronicle, who wrote a daily column for the paper for over 50 years and told him of my dilemma. He roared with laughter, and told me that he would have fun with this one. I had no idea what he meant by that, but I had faith that Mr. Caen would somehow come to my rescue.

    The phone once again rang, on the other end a furious client ready to fire me on the spot. I begged for his patience, explained that I had a plan in action and asked for 24 hours to make everything ok.

    The following day, in the Chronicle was a blurb from Herb Caen chatting up the little copy slip regarding wall-to-wall widows as… wishful thinking?

    In the following 3 days, the entire complex sold out!
    So most times it helps to be honest and then hold your breath!
    Kit

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  2. Probably 'B' on all of them except for the last where you HAVE to tell the client (so 'A'). RF

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  3. Paul,

    Thanks for the great questions. I agree with the above person, B on all except the last question has to be an A.

    So many old saying come to mind...

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