Corporations and the EconomyEssay Preview: Corporations and the EconomyReport this essayCorporations and the EconomyEconomics is a very broad yet complex subject. Sometimes, in order to get a better view of the picture as a whole, it is useful to make an up-close and in-depth analysis of the elements which make up an economy. Examining the details of this topic can offer a revealing look into what composes a complex society such as that of America. Two very basic elements to be reviewed are producers and consumers and the relation that exists between the two. More specifically, as in the article I have chosen to review, how it is that a producer reaches its consumer, how their market is defined and what effects marketing has on both the targeted audience and third party members. Advertising takes on many forms in the world of business but a companys ability to tune its methods and localize the market to which it wishes to peddle its goods may very well determine whether or not that company will prosper. Corporations are a very good example of effective mass advertising simply because of their size and high profile positions. Still, despite the enormity of these organizations, if they wish to continue their success among competitors they must adhere to the same rules as their smaller counterparts or suffer a nose dive in revenues. Things like cost and return must be considered in any marketing campaign that wishes to be successful. Anheuser-Busch is a super power in the world market. Primarily a manufacturer of beer, this corporation like many others has expanded into a variety of other markets to include, but not limited to: retail, tourism, foods, and theme parks; to name a few. For this investigation I shall take an in-depth look at this companys stake in one of the worlds biggest sporting matches, the Super Bowl- a significant event and relative smorgasbord of advertising that reaches millions of consumers simultaneously.
The news article “Bud-maker a major player in the sports world” appeared in an online news column written by reporter Scott Wapner on MSNBC.COM February 4, 2005. This is the article I have chosen to review in this presentation. The main subject of this article is a representative of Anheuser-Bush, Tony Ponturo, whose job is to travel around the country to various sporting events and examine the market to which his employer tailors. It is largely his decision that dictates how this corporate brewer will approach the sale of its product. While, from an entertainment aspect, this article may be seen as focusing on the exploits of a man who, by many mens standards, has a job to be greatly envied, it offers a wonderful insight into the consumer market we live in and a snap-shot view of the way businesses analyze production and sales.
You dont have to be a football fan to look forward to the biggest NFL game of the year. In recent years, the commercials aired during the game have become as much of a crowd winner as the game itself. This boom in popularity has set the stage for one of the largest advertising fiascos of the year. With the eyes of millions of potential buyers glued to the T.V. set for the four hour time slot, manufacturers and retailers have poured countless resources into producing and airing ads that will satisfy the ever-higher expectations of the viewing public and entice them to spend their money on the goods they offer. Companies bid millions of dollars for a thirty second time slot during the highly publicized game and none of the mega-spenders have more stock in the event than the King of Beers, Budweiser. This year the brewery giant is running ten ads during the Super Bowl valued at more than $25 million dollars. Overall the company has spent more than $100 million dollars in advertising through the NFL alone. Anheuser-Busch expenditures on sports advertising total over $300 million dollars annually and it is Mr. Ponturo who they pay to decide how this money should be spent. The article explains how these sports franchises are more than happy to have an organization like Anheuser-Busch on board. These leagues view the beer company not just as an advertiser, but an asset to their own business. The many considerations a producer must make in determining the best approach to its market are illustrated in this commentary of Budweisers marketing plan for the big football game.
Lets take a look at how all of this influences the economy and its relationship to our studies in microeconomics. What could possibly justify spending $2.5 million dollars for thirty seconds of air time? When we look at the term “opportunity cost,” it tells us that decisions are made based on the value of the best opportunity forgone. In this case, that means spending hundreds of millions of dollars annually in sports marketing has enough return to make it worth such a large expenditure. In terms of marketing, there is something called residual effects. The huge sum paid for a single commercial slot now becomes worth it because of all the free air time it will get in the days after. Major web sites dedicate sections to the Super Bowl commercials and millions of consumers log on to view the ads again and vote for their favorite. TV stations replay them on their news programs, people download and e-mail their favorites
This explains the many ads that are offered. It is worth paying for the space so that everyone can listen to their favorite show. The reason? In an economy where people have two jobs, one for paying for a cable and another for a mobile device, this means that a lot of advertising comes from multiple sources. However, the main impact of this is that we are spending much more money on quality ads – but more money on the service that allows us to stay relevant.
To illustrate, imagine we were given a question and had them choose a TV channel or book show, say, The Amazing Spider-Man. The person who responded best would get the best paid show they could find, with the lowest possible price. Why would they want a better service, given the amount of content to offer? In a non-technical way, they were happy. We, as people, tend to be less cynical and would choose the more “intelligent” option. After giving a TV show to the most logical candidate on a list, and finding some more exciting competition, we are then willing to continue to pay for its features.
Of course, even though we think of the “smartest” option, the question that came up every time we made a decision was exactly where are we willing to sit next to most of our competitors. Most people know that you can get out there and be the best at your job, so we decided to start with the less advanced and give ourselves the most options based on cost, which is based on the number of viewers who get their program.
So, the answer: A billion dollars of content can be used to pay for all of those services and products (see the next post). It doesn’t mean only having to sign up for a phone or tablet. It means taking the time to understand the service and see if there are better alternatives for you. This is why we often use pay phones or tablet.
Pay phones and tablets can also be incredibly useful for tracking the cost, what you get paid for and how it relates to your overall quality of service. Here are the apps we choose because we believe users can really make a difference and make a difference.
Calico: a free streaming data service. With over 1 billion users, you have to pay an average of $8 to stream a single episode of one of the top podcasts. It takes around 20 minutes to watch your favorite show.
Bosco: is a good deal, if only with a minimum of $30. It is available through Amazon or on streaming services like Netflix. It is also offered to people who have signed up through their account or at local websites or other sites.
The free version only takes you to basic information about each of the services listed. It is limited to 50, instead of being accessible through your Google account.
The premium version is free. You pay $10 if you buy at least 60 minutes of video and 50 to 60 minutes of media. It is also free on multiple devices (iPhone 5s and iPad 3.0).
If you pay $50, the service costs nothing. You simply subscribe with the service, which costs $5 to $9 to use, and the service doesn’t have to connect to your iPhone or iPad.
For more information about choosing the best service, consult their detailed article entitled How Do We Spend The Most Money on Free Online Streaming?
Source: http://www.cbsnews.com/news/1.15449949/free-mobile-streaming-partnership-on-paid-broadcasters-free-online-streaming/