The End of Corporate Jets, Incentive Travel, Sponsorships & Ultimately - Marketing

Links to previous posts from Incentive Intelligence dealing with this issue... 2009 Will be a Problem for Incentive Travel Awards... Is Your Incentive Program "Senate Ready?" Damned if you do... Damned if you don't... or just Damned? Nortel - Incentives, Severance, Corporate Jets - My Brain Hurts Wells Fargo Goes On The Offensive - Incentive Intelligence Applauds Government to Business - Don't Do as I Do - Do as I Say! Travel Incentives in the Gunsights

Sen. John Kerry is asking for legislation that, from an article yesterday on the Incentive Magazine web site:  "...will prevent any company that has accepted federal bailout funds from holding any conference or event without first receiving a waiver from the Secretary of the Treasury."

 

The Road to Hell is paved with good intentions...

It started innocently enough with a question to the CEOs of the major US automakers - Rep. Brad Sherman, D-California, asking them to "raise their hand if they flew here commercial."  "Let the record show, no hands went up," Sherman said. "Second, I'm going to ask you to raise your hand if you are planning to sell your jet in place now and fly back commercial. Let the record show, no hands went up."

Then AIG got spanked for their incentive travel program for independent reps held at the St. Regis in Monarch, CA.

And... Citi get's an earful from Reps. Dennis Kucinich (D-Ohio) and Ted Poe (R-Texas) - who sent a letter to Treasury Secretary Timothy Geithner requesting he "dissolve" the contract with the Mets to name their stadium Citi Field.

Now the headlines are hitting Northern Trust for their sponsorship and participation in the Northern Trust Open at the Riviera Country Club in L.A.  The press is jumping on them because they accepted TARP money and because of that they should not have followed through on their PGA sponsorship activities.

So... follow me here camera guy, we're going to do this in real time...

• Congress get's mad at the CEOs of the big three for having company jets (this one is tough - but I'm sure there is a way to justify - ask Ms. Pelosi how she likes here private jet)
• Congress get's mad at AIG for running a legitimate incentive to non-employees who EARNED an award for sales (something they need)
• Congress gets mad at Citi for paying for naming rights at a stadium (which may help their brand)
• Congress gets mad at Northern Trust for having a golf sponsorship event (again, a marketing activity employed by many, many companies)

Hmmm... can you say slippery slope?

No Marketing Plan Will Be Immune

If your business has any connection to marketing you're going to want to join this fight.  Today it is about "travel incentives" and "sponsorships" - tomorrow it will be about price promotions, sweepstakes, frequent-buyer programs, super bowl ads.  You name it and Congress is going to want to analyze it and make sure THEY think it is good money spent. 

I'm concerned - very concerned. 

I mentioned in a post about CEO pay on Fistful of Talent the other day that once Congress get's their nose in a tent - it isn't long before the entire camel is in - or snake, or other villainous animal you care to insert.  I was told that the slippery slope argument didn't hold water on that issue - but I'm feeling pretty confident that is does here.