please read the case and answer the questions which are in the case.

CHAPTER 14 DEVELOPING AND MARKETING PRODUCTS 397 between 7 a.m. and 10 p.m. The Dutch-speaking part of Belgium bans TV advertising within five minutes of the start and end of children's programs. Sweden bans all ads aimed at children under age 12. This means that when kids in Sweden watch the Pokmon cartoon series, they do not hear the closing jingle "Gotta catch'em all that plays elsewhere. But the problem for the Swedes (and others with more restric tive bans) is that they can only enforce their laws on programs origi- nating from within the country. They have no power of enforcement over programs broadcast from other nations or from satellite trans- missions. That is why the Swedes are pushing for a common restric- tive policy toward advertising aimed at children. "They're gradually trying to forge a consensus among the member states," says Stephan Loerke, a lobbyist for the World Federation of Advertisers (www. wfanet.org) in Brussels, Belgium. Although an outright ban like Sweden's is unlikely, partial bars such as that in place in Belgium could be implemented. To forestall stricter EU-wide legislation, ad- vertisers could initiate "voluntary" limits themselves. Yet some marketers are defending their actions. Advertising executive Geoffrey Roche of Toronto, Canada, dismissed the in- fluence of psychologists, saying, "They don't have mind-altering powers, and kids are a lot smarter than we give them credit for. I don't think there is any way that we, as advertisers, can convince children of anything." But Dr. Allen Kanner asks, "If advertising is so ineffective, then why do they spend billions of dollars on it each year?" Dr. Curtis Haugtvedt, president of the Society for Consumer Psychology, says that although evidence of the negative aspects of advertising does exist, ads can also benefit kids. "Even Barbie has pluses and minuses," says Haugtvedt. "Barbie helps kids imagine and play with one another, but Barbie also portrays the image of a certain body shape. Haugtvedt also stresses the role of guidance in helpin kids become responsible consumers, saying, "The child hopefully is not making choices about purchasing things in a vacuum. Thinking Globally 1. Put yourself in the position of Stephan Loerke of the World Federation of Advertisers. First, make an argument for why the EU should not enact more strict advertising laws. Second, make a case for why advertisers operating in the EU should initiate "voluntary" limits. Third, make a case for why current laws need no modification whatsoever. Which case do you agree with? Which case do you think is the strongest? 2. Some critics charge advertisers with creating wants among consumers rather than helping them satisfy needs. Select a product and describe how, if it were marketed in a developing economy, it could create wants and not satisfy needs. Explain the ethical issues surrounding the decision of whether to market the product in developing nations. Sol Nome For Kiln the Web, Isa Ad Ad Ad Ad Wild Bloomberg Bank (www.hasiacwork.com, Angue 12, 2001, Brand Maching AKTV Mall Seet Journal Earpe, May 22, 2001, p. 25, James Mac "Pytologis Act against Ad Docton Adbusters website (www.asm.org Practicing International Management Case Psychology of Global Marketing c's no secret that marketers use a good dose of psychology in both designing and implementing their promotional campaigns or at least it should not be. But some people, including Gary Rushkin of Washington, DC-based Commercial Alert (www. commercialalert.org), argue that parents are being duped. "I don't think people understand the extent of psychological tools em- ployed against their kids to whip up their desire to buy products," says Rushkin. "When they find out, they're horrified." Rushkin's organization was behind a recent letter signed by 60 U.S. psy- chologists that was sent to the American Psychological Associa- tion (www.apa.org) that complained of "the use of psychology to exploit and influence children for commercial purposes." What was the cause of their fury? Apparently, it was an article by Dr. James McNeal appearing in Marketing Tools magazine that described what is called a projective completion test. Suppose a chil- dren's TV program is a hit and boys are buying the company's toy that is tied to the program but girls aren't. To find out why, a com pany assembles a group of girls. They are given a picture of a boy and girl watching the program in which the boy is asking the girl, Why do you like watching this program? The girls' answers help provide clues to how the company can modify its marketing strategy Dappeal to girls. Dr. McNeal refers to the method as "good sense und good science." Rushkin counters, "Psychologists are going to have to decide whether psychology is a tool for healing or for exploi- ation." The American Psychological Association admits that there e currently no guidelines for psychologists working in advertising. Advertising executives are not just busy creating TV ads. Over recent one-year period, the number of children's websites with advertising dropped from 10 percent down to 2 percent. In what forms do the promotions appear? One tool is games. Roughly 15 percent of all children and teens' websites feature games. Ellen Neahome told her six-year-old that he could choose a candy at e supermarket checkout. With a pack of Sweet Tarts in hand, he broke into a little song-and-dance about the sweets. When asked if that was from the TV commercial, he replied, "No. It's from the Sweet Tarts Internet game." With the use of such games, compa- es get to spend an extended period of time with kids far more han they get from a TV ad. Another tool is e-mail. The U.S. Children's Online Privacy Act forbids companies from using e-mail to sell to kids under age 13 without parental permission. But companies get around the prob- by having kids e-mail each other. For example, children can to the website (www.sesameworkshop.org) and e-mail a greet- ng card to a friend that features a Sesame Street character. And hem there are the chat rooms. Brian Rubash is manager for techni- marketing at Tiger electronics (www.tigertoys.com), a division toy-maker Hasbro (www.hasbro.com). He says that he regularly ged on to a newsgroup he found on Yahoo! (www.yahoo.com) offer product news and to answer questions about the i-Cybie botic dog the company was launching. European nations have some of the strictest regulations cov ng marketing to children. However, nations belonging to the opean Union (EU) have widely varying rules. For example, rece bans all TV ads for war toys and bans ads for all other toys