The following appeared as part of a business plan recommended by the new manager of a musical rock group called Zapped:

“To succeed financially, Zapped needs greater name recognition. It should therefore diversify its commercial enterprises. The rock group Zonked plays the same type of music that Zapped plays, but it is much better known than Zapped because, in addition to its concert tours and four albums, Zonked has a series of posters, a line of clothing and accessories, and a contract with a major advertising agency to endorse a number of different products.”

Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion.

The manager’s advice is commendable. Zapped is an established band, and Zonked is the group’s sibling. It is logical that Zapped would want to expand its commercial empire by branching out into new markets. Zonked has the advantage of being known to a larger portion of the general public, and that name recognition could be used to help Zapped gain traction in new markets. However, the manager’s advice neglects to consider several important variables that may limit Zapped’s chances of success. The band members have already spent a considerable amount of time and energy honing their skills as musicians, and it is unlikely that any of them will settle for being known for only playing rock music, even if they are better-known than Zapped. If Zapped were to pursue the diversification strategy recommended in the manager’s plan, it would likely lead to the band’s eventual dissolution. If Zapped were to solely rely on Zonked, its continued existence would depend on Zonked’s ability to secure a profitable contract with a major corporate sponsor. The band members would either have to perform under onerous restrictions or relinquish a sizable portion of their earnings, and that would not be in their interests

It is also important to note that the manager’s advice neglects to consider the possibility that Zapped would be even better-known if it were not associated with Zonked. Zapped has a respectable following, and Zonked’s expanding empire would only serve to increase that following. Zapped currently has a Facebook page with more than 100,000 fans and a solid following on YouTube. If Zapped were to strike out on its own, many of those fans would no doubt follow the band’s progress, and the band would have the opportunity to expand that following even further. In short, Zapped’s name recognition is a valuable asset that should not be squandered on Zonked

The manager’s advice also assumes that the diversification strategy would boost Zapped’s revenues. In a word, no. The manager is correct in stating that name recognition is a valuable asset, but marketing a product is an entirely different thing. If Zapped and Zonked were to collaborate on promotional campaigns, audience members may confuse the groups, and that confusion would limit Zapped’s potential revenue. If Zapped and Zonked were to market different products, Zapped would almost certainly lose out to any sales generated by Zonked. The manager’s plan is flawed because it assumes two things that may not hold true

The manager’s advice also assumes that the band’s contract with a major advertising agency is worth pursuing. Zapped and Zonked play rock music, and a major advertising agency would likely seek to promote Zonked. That, in turn, would dilute Zapped’s fan base, and it would not be in Zapped’s interests to cooperate with Zonked. A different advertiser may pursue a different marketing strategy, and Zapped and Zonked may find themselves promoting different products, but it is unlikely that each advertiser would promote both Zapped and Zonked to the same extent. For these reasons, Zapped should resist the temptation to diversify its marketing, and focus instead on building its fan base.

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