Hooters, Inc.: A Macro-Marketing Evaluation
All economies must have a macro-marketing system. The economiesmay take many forms, but all must have some way of deciding whatand how much is to be produced and distributed by whom, when, andfor whom.
Our macro-marketing system is basically a market-directedeconomy. The key decisions are made fairly automatically anddemocratically, through the micro-level decisions made byindividual producers and consumers. Together these individualdecisions determine the macro-level decisions and provide directionfor the whole economy.
Does our macro-marketing system work in an efficient and fairway that achieves our social objectives? This question is verysubjective, and we usually analyze the performance of our marketingsystem in terms of how well it satisfies consumer needs, asconsumers see them. But remember, not all consumers have the sameneeds!
The marketing concept suggests that a firm should try to satisfythe needs of some consumers (at a profit). But, what is "good" forsome producers or consumers may not be "good" for society as awhole. This is the "micro-macro dilemma." It means that in runningour macro-marketing system some compromises must be made to balancethe needs of society and the needs of individual producers andconsumers. Making these compromises and still protecting individualfreedom of choice is not easy. This exercise will help youunderstand the difficulty of resolving micro-macro dilemmas.
In this exercise, please read the mini-case and answer thequestions that follow.
Founded in 1983, Hooters of America, Inc. is the franchiser ofover 455 locations spread throughout forty-four states in theUnited States and twenty-eight countries and territories worldwide.The company employs more than 25,000 people, of which 17,000 areHooters Girls.
While often credited with popularizing the concept of "hotwings," Hooters is also known for the costumes of its femaleemployees. According to the company's website, "The element offemale sex appeal is prevalent in the restaurants, and the companybelieves the Hooters Girl is as socially acceptable as a DallasCowboy cheerleader, Sports Illustrated swimsuit model, or a RadioCity Rockette."
Over the years, the company has faced several sexual harassmentlawsuits and in 1991, the Equal Opportunity Employment Commissioninitiated an investigation into the hiring practices of thecompany. While the investigation was ultimately discontinued, manyconsumers argue that the company exploits beautiful women. Theterms "demeaning" and "degrading" were used by members of thegeneral public when CEO Coby Brooks went undercover in an episodeof Undercover Boss. While those terms were disturbing to him, thearguments certainly were not new and, as the company websitestates, "To Hooters, the women's rights movement is importantbecause it guarantees women have the right to choose their owncareers, be it a Supreme Court Justice or Hooters Girl."
Yet, many persist in their perception that the company basicallyexists to take advantage of a woman's economic vulnerability and aman's stupidity. Since the airing of the Undercover Boss episode,some minor protests have occurred at the opening of new Hooterssites. In the extreme, some consumer groups have petitioned to havethe store openings blocked. In a down economy, some see suchprotests as a problematic due the potential jobs that would belost.
2.
value:
3.00 points
1-How does the "sex appeal" format of Hooters affect society'sviews of women?
A-Reflects existing social values in the short run
B-Does not reinforce these values in the long run
C-Focuses on unsubstantiated wants
D-Forces men to behave as dummies
E-Forms societal values which did not exist before
3.
value:
3.00 points
2-What parties would NOT be negatively affected by thesuccessful blocking of a new store opening?
A-Hooter’s Girls
B-Hooter’s shareholders
C-Consumer groups
D-CEO Coby Brooks
E-Current customers
4.
value:
3.00 points
3-If Hooters of America attempted to completely redesign itsbrand based on the criticisms of some consumers to become a morewholesome, family-oriented business, what would be its best overallstrategy?
A-It should rely on word-of-mouth and social media to showconsumers how it has changed.
B-It should raise prices and make it harder for consumers tochoose.
C-New advertising could suggest that consumers will not need tobe manipulated into buying Hooters products.
D-Hooters would need to develop a new competitive advantage.
5.
value:
3.00 points
1-Sex appeal has a very strong influence in advertising andpromotion. Critics of Hooter’s advertising likely believe which ofthe following statements?
A-Hooter’s advertising reduces economies of scale inmarketing.
B-Hooters uses clever ads to manipulate men into buying itsproducts.
C-Women are economically empowered through Hootersadvertising.
D-Advertising lowers Hooter’s prices and thus harms society.
E-Hooter’s advertising has a positive effect on the economy.
6.
value:
3.00 points
6-Marketing systems are evaluated on the macro level for _______and on the micro level for ________.
A-general profitability; how individual firms gain or loseprofits
B-how consumer needs are satisfied; overall effect onsociety
C-overall effect on society; how consumer needs aresatisfied
D-overall effect on the global market; limited effect on theU.S. market
