IMKTG REPORT March 18 2003

al berrios & co. IMKTG REPORT 03.18.03: War Sentiments, HR and Education

THIS WEEK'S CONTENTS ARE:
[1] UPDATES: Executive Summary of REPORT
[2] BRANDSTRATEGY: An Analysis of Consumer Sentiment Towards the War in Iraq
[3] CONSUMERFOCUS: Do Awards Matter?
[4] MEDIA: Radio Consolidation Is Good
[5] MANAGEMENT: Re-Evaluating Your Entry Level HR Strategies: State of Education

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[1] UPDATES: Executive Summary of REPORT

>> "Americans understand the costs of conflict because we have paid them in the past. War has no certainty except the certainty of sacrifice." - President George W. Bush, Presidential Address, March 17, 2003

Good morning execs,

This weekend, al berrios & co. gauged consumer sentiment to the war. The results are available only by contacting Al Berrios. Some commentary below.

In addition, we review awards & grades, an addendum to our analysis supporting media consolidation, and the final part in our 4-part series on entry-level hr practices.

Enjoy.

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[2] BRANDSTRATEGY: An Analysis of Consumer Sentiment Towards the War in Iraq

Based on a general interpretation of all the comments we analyzed, it appears that the pending war is of little to no interest to the consumers we reached, most likely since they perceive the war will have very little effect on them directly.

A majority of celebrities are anti-war, however, our research indicates that celebrities doesn't seem to have influenced consumers in any way, as most didn't refer to their favorite celebrities' political inclinations as having any affect on their sentiments.

As a result of this analysis, al berrios & co. expects that upon the conclusion of the War in Iraq, consumer spending, and consequently the rest of the economy, will begin its rebound.

For more information, contact Al Berrios.

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[3] CONSUMERFOCUS: Do Awards Matter?

Remember the feeling when you got an F on that big test in school? You probably felt like the dumbest person on Earth; like you couldn't accomplish anything. If a grade can influence your views on yourself, can a grade influence the way you think about the rest of the world? If grades are used to determine your acceptance into a job or to award your accomplishments in your field, then yes. If you find yourself more interested in watching a movie or television program because it received an award, then yes. If you argue that what someone else thinks doesn't really matter to you, or that you are in control of your own destiny, then why does it matter so much when you are being graded or awarded? In fact, there are documented instances when students file lawsuits to receive higher grades and teachers that direct students to drop out in order to prevent overall test scores from decreasing due to a poor student's performance. (I have personally been a victim of this tactic several times during my schooling.) Grades and awards are the only means regulators (and clients) have of gauging the performance of a school (or business). Poor grades may result in shut down schools and lost jobs. But in this system, the student-consumer suffers by having their choices eliminated and purchasing habits impaired.

BOTTOM LINE: Being in the position to issue a grade now has made me extremely sensitive to the effects grades and awards have on individuals. Companies know this, and award everything that can be awarded, in order to persuade consumers to use their brand. Ad agencies are notorious for working for awards, whether or not their work yields results for a client. However, studies show that excellent grades or lots of awards don't mean that the person or product is of the highest quality. Statistics professor Dr. Matthew S. Johnson at Baruch College Zicklin School of Business has demonstrated evidence in his psychometric studies that there isn't a great enough statistical significance in a grade and what a student actually knows to prove that grading is an effective way of gauging performance or quality. Ultimately, though, enough consumers aren't aware of the quality of their educational and awarding institutions and naturally gravitate towards anything that can help make their decisions easier, even if they aren't aware that their ability to choose is being impaired. So, should we all pursue grading and awarding of our brands? Consider this: with too many awards, their value as a whole diminishes, making consumers more skeptical. However, as al berrios & co. analysis of consumer brand involvement has showed, when consumers are involved in the grading or awarding process, the results always tend to be more rewarding for all parties.

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[4] MEDIA: Radio Consolidation Is Good

(Addendum to April 9, 2002 IMARKETING REPORT, MEDIA&CONTENT)

The FCC held it's most recent meeting on media ownership rules on Feb 27. Most Americans weren't even aware. Media concentration, it appears, isn't really a big deal as long people continue to be entertained, whether through news or reality programming. But even anti-consolidationists have to concede that it doesn't make any sense for owners to program the same content via multiple properties in the same market. Their argument is about preventing uniform opinions without opposition, however, cost barriers to entry and the need to generate advertising revenue with safe programming are doing that already. Nowhere is this clearer than in the radio industry, where consolidation scares regulators and competitors that local content will be lost.

BOTTOM LINE: Originally tackling this issue from the content producer's point of view, let's tackle this from the policy maker point of view. What are your goals with preventing consolidation? Helping consumers or helping the industry? For both, allowing consolidation is the best alternative. Radio isn't the only medium available to consumers and by allowing the industry to shrink, advertising rates decrease. Further, the tectonic shifts within the music industry in the last 5 years have changed the distribution of music to consumers. They are no longer captive to radio for the latest music. Although 22% of consumers get their news from talk radio, radio is a passive medium, and consumers have an alternative channel for their news content. If it's choice you want to give consumers, consolidation works, especially in a local market, where a single owner can broadcast to several cultures and lifestyles, where multiple owners all compete for the same largest owner. And if it's differing points of views, consolidation won't work since media caters to perceived popular consumer demand in order to attract a large enough audience to attract advertisers. Ultimately, the FCC's various studies on media ownership exclude the irrational consumer, instead arguing on how consolidation affects small businesses and rational, activist, consumers.

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[5] MANAGEMENT: Re-Evaluating Your Entry Level HR Strategies: State of Education

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Disclaimer: The recommendations, commentary and opinions published herein are based on public information sometimes referenced via hyperlinks. Any similarities or likeness to any ideas or commentary from any other sources not referenced is purely coincidental. al berrios & co. cannot control any results occurring from advice obtained from this publication nor any opinion(s) conveyed by any reader of this publication.

(c) 2001-2005. All Rights Reserved. al berrios & company, inc. Published by al berrios & co. This Report may not be reproduced or redistributed in any form without written permission from al berrios & co., subject to penalty.

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