Marketing

Gadget Company Engages in Pay-for-Praise Online

"Amazon.com runs a side business called Mechanical Turk ... where people can go, register, and get paid to do little tasks that computers can't do," explained blogger and film student Arlen Parsa. While on the site, Parsa saw a request to review Belkin International's consumer electronics products.

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Eli Lilly Finally Pays for Drug Marketing Abuses

Eli Lilly will pay the largest fine "in a health care case, and the largest criminal fine for an individual corporation ever imposed in a U.S. criminal prosecution of any kind." The pharmaceutical company will pay $1.42 billion to settle criminal and civil charges related to the marketing of its anti-psychotic drug Zyprexa.

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$50 Million to Polish Cars?

Kelmenson, Davis & Associates (KDA), a marketing advisory firm with ties to the automobile industry, is trying to raise $50 million a year to spend on fixing the image of Detroit's Big Three auto companies "via public relations and a cable TV documentary," plus "an informational magazine and website called 'American Drive,'" reports Jean Halliday.

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Cause-Related Marketing Goes to the Dogs

dog wearing glassesThe economic downturn is hitting the pet industry, too. To compete in a crowded and shrinking market, Mars' dog food brand Pedigree will buy its first-ever Super Bowl ads. But, rather than directly advertising their dog food, Pedigree will promote dog adoptions.

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Fashionable Cigarette Marketing Tactic Gets the Boot

SmokerImperial Tobacco has been paying out cash incentives and lavishing corporate entertainment on owners of trendy clothing stores and hair boutiques in Adelaide, South Australia, to get them to sell Peter Stuyvesant brand cigarettes in special displays amid their hip merchandise.

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Smokers Can Sue Tobacco Companies for Fraud over "Light Cigarettes"

1976 True cigarette adThe U.S. Supreme Court has given a green light to smokers to sue tobacco companies over the fraudulent marketing of "light," "ultralight" and "low tar" cigarettes. Cigarette companies are currently facing around 40 such lawsuits. For decades, advertising lulled smokers into believing that so-called "light" and "low tar" cigarettes were better for their health. Smokers in Maine, however, sued Philip Morris, charging that the company was aware for decades that smokers compensate for lower levels of tar and nicotine by taking longer and deeper puffs. Philip Morris argued that the Federal Trade Commission's endorsement of machine testing for tar and nicotine levels in cigarettes, started in the 1960s, should relieve them of fraud charges. The FTC recently abandoned its testing method, though, after concluding that it's flawed because machines don't take into account how smokers adjust their smoking behavior when using cigarettes with lower levels of nicotine.

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"Car Czar" Will Become World's Most Powerful Ad Executive

The draft bailout for the U.S. automobile industry calls for the appointment of a "Car Czar" who, if the bill passes and is signed into law, would instantly become the most powerful marketing and advertising executive on Earth. The Czar would be charged with overseeing auto company expenses over $25 million, which means he or she would control the companies' media buys.

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