Marketing Topics This Week

Deceptive Marketing Practices of Discover Financial

Deceptive marketing means to advertise or promote something that misrepresents the true purpose or value of that product.  Discover Financial has found its way in the news because they are being accused of deceptive marketing practices by asking their consumers to sign up for credit card services.  One of these services is a payment protection service; in the case of job loss the consumer would get assistance in handling payments.  The problems don’t stop there.  The attorney general of Minnesota, West Virginia and Missouri are suing on behalf of their state consumers regarding this and several other programs provided by Discover.  Discover Financial believes that they have made the necessary changes to meet the concerns of the FDIC and wants to maintain a long-term relationship with their customers; they would like to put this incident behind them.  I’m sure this won’t be the last time we see Discover in the news, consumers know your rights and protect your finances, read the fine print, it’s important! 

Jennifer Hudson Weight Loss Center

Jennifer Hudson became a household name after her time on the television show “American Idol,” and then blazed the screen in her role in the movie “Dreamgirls,” which she won her first Oscar.  Now Jennifer Hudson is making herself known for health and fitness.  This past year she has conquered her own weight challenges and loss nearly 80 pounds.  She did this by using the Weight Watcher’s Plan; she is now a spokesperson for the company.  This week launched the opening of  “The Weight Watchers Jennifer Hudson Center.”  The center is decorated with pictures of her and is located on the South Side of Chicago.  Weight Watchers has pledged to donate a portion of the profits from the center to the foundation Jennifer Hudson co-founded in memory of her nephew.  Hudson said she targets children because they make a difference, and now she hopes to make a difference in their health.  Congratulations to Hudson on her weight loss and her desire to come back and help her community.

Groupon’s Rewarding Loyalty

There are several articles out there speculating that Groupon has a new rewards program on the rise.  With this program, after you spend the individual merchant’s maximum, you get an even deeper discount when spending with the merchant in the future.  When you use your credit/debit card at participating merchants, it is linked to your Groupon account.  Once you reach that store’s desired amount, Groupon gives you the opportunity to purchase a Groupon for that store with an even greater discount.  My initial thoughts were that this Groupon Rewards program was great.  It sounded like a win-win-win situation.  It’s a win for Groupon because once the Groupon is bought it’s money in the bank for them.  It’s always a win for the consumer when they can save money.  Likewise, whenever money is spent, it’s a win for the merchant. The motive behind this deal is to ensure merchants that consumers will continue to come back and that this business deal will benefit all parties involved.  If this works, it’s great for the merchants because the consumers have to spend the money up-front to qualify for the much-discounted deal from Groupon.

The problem we have with Groupon Rewards, as a consumer, is the shared information.  Not only do you have to link your billing information to Groupon, but also to the merchant and then they come together and share that information.  It raises the question for me about the safety of financial information being shared. With so many cases of identity fraud and financial misuse, I hope that they have a safe way of sharing this information without violating the privacy of the consumer. Aside from these concerns the program looks like it has great potential.  We will be watching to follow its development.

World Heart Day

Today is World Heart Day.  World Heart Day began back in 2000 to inform people everywhere that heart disease and stroke are the leading killers of individuals, claiming 17.3 million lives a year.  It takes place September 29th of every year.  Risk factors for heart disease and stroke include raised blood pressure, cholesterol and glucose levels, smoking, inadequate intake of fruit and vegetables, overweight, obesity and physical inactivity.  Several cities within the Chicagoland area are participating in walks to encourage healthy lifestyle choices and to raise money for heart awareness.  Take some time today to make sure you and those around you do something healthy for their heart today.

Financial Tips for the Young & Chic

On last Thursday, B.M.M.O. Consulting attended a networking event sponsored by Ms Career Girl.  This event was very informative and gave some great financial tips.  We wanted to share this information with you, so that you can go from being young and chic to mature and elegant.  Set yourself up so that you can live the same life today, tomorrow and forever!  Make decisions today that will allow for an even greater tomorrow.

Use your credit wisely – You should only carry a balance that is 30% of the total allowance.  Also, find out what day the credit card reports to the credit bureau are due and pay your bill before that day, even if its early, this keeps the balance that is reported to the bureau down, thus providing higher credit scores.

Savings – If your company offers a 401K and matches it, contribute at least up to what the company will match.  Pay yourself 20% of your income each pay period; the goal is to have 3-6 months of your income saved in case of job loss.  Diversify your savings: keep a regular savings for emergencies, a portfolio of investments if you decide to retire early and a 401K for retirement.  Your 401K should be used for long term investing, but if you have come into a situation and need to pay off a bill, only use your 401K if the total of the bill is more than the amount it would cost you to borrow including the 10% penalty. 

Insurance – There are two types of life insurance, term life and whole life.  Whole life provides better benefits.  Term life insurance is only for a set period, after you pass that time period you are no longer covered.  Whole life allows you to build a cash benefit amount that can be withdrawn for a low repayment interest.  Essentially you don’t eve have to pay it back, it's your money, but it is wise to do so.  This money can also be used for emergencies that come up, at no penalty. 

Housing – Housing expenses should account for 35% of your income.  Every year you should meet with your insurance agent and make sure all of your coverage is up to date with changes that have occurred over the past year. 

We hope that we have provided you with good tips to stay financially savvy.  Please post any additional tips or comments you have.

Wal-Mart moves into Downtown Chicago

On this past Wednesday, Wal-Mart opened a smaller store in the West Loop, in the Presidential Towers.  This store will only be one-fourth of most traditional Wal-Mart supercenters.  They have plans of opening one more this year and several others in 2012 in other Chicago city locations.  Three-Fourths of the Presidential Towers store location is filled with grocery items, the other fourth holds convenience items, such as toiletries, pet products and office supplies.  It doesn’t have a full deli or bakery, but has some deli items and baked goods.  As expected, moving to the city doesn’t provide many parking options; the store has a few dedicated spots, but no big lot like its larger locations.  Residents of Presidential Towers have a separate entrance; this helps to protect the safety of the building.  Wal-Mart made this move because they felt like they had exhausted their suburban and rural areas and were looking for a way to boost sales.  Looks like running errands on lunch just got easier for people who work in the West Loop.

Comcast helps out the Community

How important is your Internet access to you?  How would you survive if you had no means to connect to the Internet at a moment’s notice whenever you felt like it?  Many students in the U.S. experience this on a regular basis.  They live in homes without not only Internet, but also without a computer.  Having a computer and Internet access is essential in staying on task with what is going on in the world and for future advancement.  Comcast saw a need and found a way to help solve this problem, they want to “close the digital divide.”  

Comcast has launched a program called “Internet Essentials.”  This program offers Internet access for up to 1.5 Mbps and upload speeds of up to 284 Kpbs for only $9.95 and promises to never increase the price.  There will also be no activation or equipment rental fees.  This is a really good deal; regular customers pay nowhere near this price and are subject to price increases at any moment.  In order to qualify for this program you must have at least one child who receives free lunch from the National School Lunch program, must be in the coverage area, not currently have Comcast service or subscribed in the last 90 days or have an overdue bill with unreturned equipment.  The enrollment for this program will last through the end of the 2013-2014 school year.  Parents may continue to receive this benefit until their child graduates from high school, as long as they still meet the program qualifications.

LeAnn Talbot, senior vice president of Comcast had this to say about the program “Internet Essentials helps level the playing field for low-income families by connecting students online with their teachers and their school’s educational resources and by enabling parents to receive digital literacy training so they can apply for jobs online or use the internet to learn more about health care and government services, and a host of other activities.”  The initial purpose of this program is to help kids, but it looks like Comcast hopes to be able to help the entire family.  If the parents can utilize it in a positive manner then they will to be able to better themselves, which should lead to the betterment of the entire family.  Good job Comcast for seeing the bigger picture.  Everyone needs help at all levels, if you help the kids, you need to help the parents and they can grow and provide success together. 

Comcast is also helping put computers in these homes. They will provide the family with a voucher to purchase a low-cost computer for $149.99, tax not included.  This program also offers access to free digital literacy training, what’s the use of having all these tools and not knowing how to use them.  Looks like Comcast has covered all the details, now it’s up to individuals to take advantage of this opportunity.

For more information about the Internet Essentials program, log on to www.internetessentials.com for English, or call (855) 846-8376, for Spanish log onto www.internetbasico.com or call (855) 765-6995.

Please pass this along to anyone who can use it.  When help is being given, please take advantage of all the resources available.

Marketing Glitz This Week

Women making moves in Business

This week the Women's Business Development held an award ceremony honoring successful women of today.  Teresa Ging, founder and president of Sugar Bliss Cake Boutique Inc. won the Rising Star Award.  She is also opening a second store in River North; her first location is in the Loop.  In the three years she has been open she has sold 1.5 million cupcakes to over 200,000 customer, she said that amounts to one cupcake a minute.  Stop by and blissfully fill your sugar craving.  Marilyn Jones, founder and president of Chicago-based Consolidated Printing Co. and Sharon Hoffman Avent, who heads Smead Manufacturing were also honored.  Women there is nothing you can't do!

Retail Sales have Halted

August retail sales were unexpectedly low.  The economy is really starting to take a toll on the shopping habits on consumers.  So many people being without jobs and limited income growth have put a strain on the amount of money consumers are willing to part with.  Household spending accounts for 70% of the economy.  Companies are getting smart and ordering less inventory to brace themselves for the recent decrease in shopping.  Grocery and sporting goods were two of the categories that saw an increase in spending.  This makes sense, everyone has to eat, and with basketball still locked out and baseball almost over, everyone is ready for football!  Big ticket items such as cars and furniture spending is down, along with a sharp drop in clothing as well.  The season is changing, so I’m sure shopping will see an increase in the next months. 

Darden Restaurants are getting Healthy

Darden Restaurants have taken on the challenge given by First Lady Michelle Obama to help end child obesity.  They have decided to reduce the calories and the sodium in their meals.  Kid’s meals will automatically come with a side of fruit or vegetables and with 1% milk unless an adult requests a substitute.  Other fast food chains have also stepped up and added fruit to their menus and taken down pictures of less healthy food items.  The food healthiness ultimately starts at home, but it is good to see restaurants supporting the cause, especially since 1 out of 3 meals are eaten out.  

5 Fees to Avoid & How

1. Beware of the full cost in balance transfers - Transferring credit card balances may seem like a good idea for a lower interest, but be careful.  Some companies make you pay the interest of the amount of credit that you owe.  Check the fine print and decide which plan provides the best savings.
2. Retail Credit Cards - Signing up for that credit card sounds really nice when they offer you that 10 - 15% off, but if you don't pay it off when the bill comes, that 10-15% has just disappeared.  If you say yes to the card, weigh the cost of the interest rates and make sure it's really worth it!
3. Annual Fees on Reward Cards - Cards that have rewards come in handy when you want to get that item you normally wouldn't buy, but could "earn" it through normal purchases.  Sometimes these cards come with annual fees from $25 and up.  After you pay that annual fee, is the reward really worth it?  Fret not, there are several companies that offer free reward credit cards, Capital One, Chase and Pen Fed are a few.  
4. Don't Dial 411 - When you dial 411 you will pay $1.25 or more.  There are two options to save you some money.  Microsoft's Bing has a number you can call (800) BING-411 or you can call (800) FREE-411, this number requires you to listen to advertisements first.
5. Pesky Baggage Fees - You can't travel without luggage, and with the size requirements for liquids, its hard not to check your bags.  Unless you fly Southwest Airlines or JetBlue, you will pay something to check your luggage.  While not convenient and requires planning ahead, you can save by shipping your luggage ahead of your trip via FedEx, UPS or the USPS.

B.M.M.O. Consulting Remembers 9/11

B.M.M.O. Consulting remembers September 11^th, 2001, today is the 10-year anniversary of the 9-11 attacks.  This day changed the lives of U.S. citizens in ways that no one had ever imagined.  A nation had never before become so involved in the safety of individuals as they board airplanes.  This was a day of much tragedy, but also much unity.  People who didn’t know each other stood together to help pull each other through such a horrific situation.  Families were torn apart by the devastation, but new bonds were formed in the midst of adversity.  Many opinions lurk in the “real truth” behind the attacks; the one thing that is undeniable is that the lives of the individuals affected on that day, will never be the same.  In attempts to retaliate, several U.S. soldier’s lives have been lost and many soldiers still are over there risking their life for the safety of our nation.  On this day, B.M.M.O. Consulting takes a moment to pause and thank the soldiers who have put their lives on the line for the U.S., to mourn the loss of the soldiers who are no longer here and to pray for the families who lost loved ones and the soldiers who still remain at war to have a safe return.

“You can be sure that the American Spirit will prevail over this tragedy.” – Colin Powell

Marketing This Week

50 Cent’s Road to Feeding Kids in Africa

Most of the time the media only likes to portray rappers as thugs and negative role models.  Rapper 50 Cent is proving to the world that the negative stigmas attached are all wrong in his recent business venture to try to feed 1 billion kids in Africa.  50 Cent took a visit to Africa and was shocked by the famine situation.  He says, “I grew up without money, but I didn’t grow up hungry.”  He feels it is his duty to give back and help those who are less fortunate than him.  50 Cent partnered together with Pure Growth Partner and produced an energy drink called “Street King.”  It comes in orange, mango and grape flavors.  Every sale of Street King will go towards helping feed famine stricken kids in Africa.  Kudos to 50 Cent for giving back in a major way!

Groupon & National Louis University Prepares Future Teachers of Tomorrow

In a recent Groupon coupon deal something strange came up.  An offer to take graduate level classes at 57% less than the actual cost.  Deals 50% off or more are expected on Groupon, but for education???  This was a major shocker.  Education is vital in our society today and Groupon and National Louis University of Chicago have certainly taken notice.  An introductory graduate level teaching course is being offered, it is National Louis University’s hope that by offering such a deal, they can attract more talented teachers to their school.  The total cost of the class would normally run $2,232, but with the Groupon it only costs $950.  Today is the last chance to take advantage of this deal; don’t let it and your future pass you by!

The Future of Saab looks Bleek

Saab, previously owned by General Motors, now by Spyker Cars, may be forced to file for bankruptcy.  They asked the court to grant them protection from their creditors until they completed some financial deals in China, but the court ruled they would not protect them.  Bankruptcy or an 11^th hour deal is looking like the only option.  Saab has not paid its employees for work competed in August, and the June and July payments were late.  The union was considering taking action against Saab but wanted to wait until the court’s ruling.  With that now being done, the union may soon be on the doorstep of Saab demanding pay for their workers.  They had to shut down their productions in Sweden back in June because suppliers refused to continue providing them with credit.  Victor Muller, the chairman and chief executive, stated that he plans to appeal the judgment. Time is running out, Muller better come up with a plan soon, or its bye-bye Saab for good this time.  

Marketing News of the Week



Lisa Leslie, Partial Owner of LA Sparks

Lisa Leslie, former WNBA Los Angeles Sparks star is now part owner of the LA Sparks.  She is the first former WNBA player to invest in a team in the league’s 15-year history.  Leslie feels like her career has come full circle, she went from being a player to now a part owner.  Congrats to Lisa Leslie!

Michael Vick is getting Another Chance to Make Things Right

This week the Philadelphia Eagles and Michael Vick reached a 6-year deal that could amount to $100 million.  Is this deal really all its cracked up to be?  Vick still owes $19 million from his bankruptcy case and is only guaranteed $40 million.  If he does not get the full $100 million he will still owe money to his creditors.   Vick had a great career start; he was drafted number 1 in 2001.  He had a rough middle with the dog fighting problems, but he is now getting his life back on track and staying out of trouble.  We wish Michael Vick much success as he continues to redeem himself as an individual; he has already proven the skill is still with him.

Is the AT&T and T-Mobile Merger in Danger?

Back in March the announcement was made that AT&T would be buying T-Mobile for $39 billion.  Well the Justice Department has decided that maybe this isn’t such a great idea.  The government believes that these two companies combined would harm competition and raise prices for consumers.  AT&T argues that by having more towers it would improve wireless service quality and expand high-speed wireless Internet service across the US.  They don’t mention anything to combat those pricing concerns though.  If this deal fails AT&T is the biggest loser, or are they?  They will have to pay $6 billion cash to T-Mobile and other benefits if the deal does not go through.  Deutsche Telekom has been trying to dispose of T-Mobile USA for at least two years now.  So what does that say about the future of T-Mobile?  The AT&T buyout might not go through and Deutsche Telekom really doesn’t want it, what’s the next plan for getting rid of T-Mobile USA?  Neither of these outcomes seems like a good idea.  Some speculate that there will be a Sprint/T-Mobile merger.  Either way, looks like Deutsche wants to unload T-Mobile and might try anything to do so.  Hold on T-Mobile customers, change might be on the way.  Only time will tell if is a good or bad change.