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Archive | April, 2009

Social Media Marketing’s Dark Side

Plenty of national food service companies have been eager to wade into the social media world as a way to engage and recruit customers.  Dunkin’ Donuts has tens of thousands of friends on Facebook.  Other restaurants, large and small, have pumped up their online presence in recent years and the internet has become a very important medium for advertising.

But social media also has a dark side, because once you throw your brand out into cyberspace, anyone can praise it.  Anyone can also tear you down.

Take the Jack-In-The-Box example.

The national chain ran a Super Bowl ad this year in which their long-time mascot, Jack, was hit by a bus.  Jack-In-The-Box followed the ad up with a social media marketing campaign that allowed users to post get well cards for Jack.  The chain leveraged several social outlets, including YouTube, Twitter, Facebook, and Flickr.  Thousands of people responded, and a good portion were great for brand-building.

However, a significant percentage were vulgar, brand-bashing, and downright offensive.  In the “old days” (read: anything more than 3 years ago) relinquishing power over what could be said publicly about a brand was pure marketing sacrilege.

But progressive marketers these days have recognized a couple key sea changes, especially as the Millennium Generation gains buying power.

First, people 30 years old and younger in this country have been bombarded with advertising since birth.  They know when they are being pitched and they are likely to be skeptical.  Second, anything that lacks authenticity is Dead On Arrival, and a waste of marketing dollars.

Hence Jack-In-The Box’s willingness to let consumers drive their campaign, even if it meant allowing Jack to get beat up in the process.  In the end, the ultimate authenticity is a surrender of control over a brand.  The most authentic marketing is word-of-mouth, and in an era of unprecedented connectivity, word-of-mouth can travel at lightning speed.

Campaigns like the “Get Well Jack” one are ways to harness the powerful, if unpredictable, world of electronic communication.  Just be ready to experience the dark side of social media marketing, where brands are passed through the ringer by anonymous pranksters.  Luckily, most brands come out the other end bruised but truly “authentic.”

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Waitress Steals Credit Card Info For Small Fee

Waitress Steals Credit Card Info For Small FeeA waitress at Bubba Gump’s restaurant in the French Quarter of New Orleans was arrested recently and charged with possession of fraudulent documents and credit card skimming.

Jaleesa Jimerson reportedly used a skimming device to record the credit card information of up to 50 Bubba Gump customers.  The device was given to her by a man and a woman who also paid Jimerson $220 for her services.

When police showed up at Bubba Gump’s with a warrant, Jimerson excused herself and tried to hide the skimming device in the bathroom.  Police soon found it and arrested the waitress.  She received 108 counts for each card she skimmed, making for a massive indictment.

The judge in the case, Gerard Hansen, set a $5,000 bond for each count, and since there were so many counts, it soon added up to $1,080,000.  Jamison remained jailed after the hearing since apparently the pay isn’t so good in credit card skimming.

There was no word if any money was stolen using the swiped card info.  Jimerson still awaits sentencing.

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The Golden Gate Restaurant Association Denied By Supreme Court

The Golden Gate Restaurant Association Denied By Supreme CourtThe Golden Gate Restaurant Association (GGRA) petitioned the Supreme Court recently to prevent the city of San Francisco from enacting legislation that would require employers to pay a fee to provide health coverage for their workers.

On Monday, the Supreme Court refused a temporary stay on the San Francisco legislation.  All businesses in the city with 20 or more employees would have to meet the new requirements.

The law in San Francisco was originally passed in 2006, but has since been held up by a successful court challenge by the GGRA.  A federal appeals court decided the law could be enacted temporarily last year, and now the GGRA is appealing to the U.S. Supreme Court for an emergency injunction to prevent the law from going into effect this year.

Similar legislation in New Jersey and Maryland were struck down by other Federal appeals courts, setting up a conflict in the lower courts that usually means the Supreme Court will weigh in.

However, it is also noted that the Court does not like to get involved in current national policy issues, and the Obama administration’s lofty health care goals for this year could prevent the Supreme Court from weighing in on the San Francisco petition.

The $1.17 to $1.76 per hour per employee healthcare fee has been decried by business owners in the Bay Area as putting an undue burden on business.  Business owners also claim the law violates a federal act that prevents local government from enacting separate pension and benefit plans from national ones.

San Francisco lawmakers counter that healthcare for the city is a necessary, progressive service that benefits everyone.  They also say the hourly fee can be applied in multiple ways, including towards a company’s health premiums, the city’s Healthy San Francisco program, or employee health accounts.

The question of how universal health coverage will affect business in the United States is only now heating up as progressive policies are being considered at all levels of government in the U.S.

Will universal health care wreck business and entrepreneurship?  Or will it create a progressive, egalitarian society for the 21st century?  Somewhere in between?  Weigh in with your opinion below!

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