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Consumer Awareness Chapter 5, page 65. Protecting our wallets from our gullible minds . 3 Roles in Society. Citizen Vote, pay taxes Worker Create goods or services Consumer Buy and consume goods and services Teens spend $80 to $100 Billion and estimate to double in the next few years. - PowerPoint PPT Presentation
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Protecting our wallets from our gullible minds
CONSUMER AWARENESSCHAPTER 5, PAGE 65
3 Roles in SocietyCitizen
Vote, pay taxesWorker
Create goods or servicesConsumer
Buy and consume goods and servicesTeens spend $80 to $100 Billion and estimate to
double in the next few years
Book – Complete page 66Caveat Emptor = Buyer BewareCompanies compete for your MoneyPersonal sellingFinancing as a marketing tool88% of 90 days same as cash TV, Radio, InternetProduct Positioning
Name the Font – TV, Movie, Product1.
5. 7.
9.
8.6.
4.3.2.
13.
18.17.
16.15.14.
12.11.10.
24.21. 23.22.
20.19.
You Tube House, M.D.
Wall-E M*A*S*H
Snickers Warcraft Guitar Hero
Lord of the Rings
Mythbusters
Kiss ESPN Twitter
Amazon Breaking Bad
Indiana Jones
Tron
Simpsons Ikea Skype Harry Potter
Dexter Kraft Twilight SEGA
Page 68 & 69Significant purchase is over $300Physiological changes when making significant
purchasesHis name is immaturity Can spend more than you makeMust develop power over purchases
1. Wait overnight2. Consider your buying motives, no amount =
contentment3. Never buy anything you do not understand4. Consider the ‘opportunity cost’5. Seek wise Counsel
Short Quiz1. What is Puffing or Puffery?
Puffery as a legal term refers to promotional statements and claims that express subjective rather than objective views, such that no reasonable person would take them literally.
2. What does FTC stand for and what do they do? Federal Trade Commission
3. Which of the following is legalA. Bait and SwitchB. Phony contestsC. Infomercials
C. Lets watch
Laws you should knowDoor to door sales
3 days to cancel if sign contract at location other than sales floor
Mail OrderMust be shipped in time given, max of 30 days Unordered goods for payment cannot be sent
If it is, must have free return or allow you to keep for free
Under 18, not of age of majority Can only enter ‘necessity’ contracts (food, medical)All sales is, is a contract
Contract Law1. Offer and Acceptance
Must be given offer and must accept2. Genuine Assent
Based on truth without extra pressure 3. Consideration
Both parties must receive something of value4. Legality
Must be of something that is legal5. Capacity
Mental ability to enter into a contract
Truth in Advertisement Ads must
Be truthful and non-deceptive; Have evidence to back up their claims; and Not be unfair
Is deceptive if it ads or omits information that Is likely to mislead consumers acting reasonably under the
circumstances; and Is "material" - that is, important to a consumer's decision to
buy or use the product.Is unfair if
It causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid; and
It is not outweighed by the benefit to consumers.
What can happenCease and desist ordersCivil PenaltiesCorrective advertisements
Illegal Tactics 1: Illegal AdvertisementBait and Switch
Advertise wanted item for low priceOnly expensive items at the store or push by
sales to buy the more expensive itemTo getaway with it use small print:
Limited available per storeOnly certain modelsNo rain checks Certain requirement to get low price (Active
military) False and Misleading Advertisement
Illegal Tactics: Deceptive Sales PracticeTie In Sales
Get deal if you buy another product you do not want
Maintaining or Creating a MonopolySetting Prices / Price Fixing Agreements to restrict AdvertisementRestraints on other business practices
Chapter 8, page 119
BARGAIN SHOPPING
Page 121 & 122Misrepresented – Harm – Win/WinFirst key: Negotiate everythingDon’t be afraid to ask7 Rules of Negotiating:
1. Tell the truth2. Use the power of cash
1. Cash is Emotional & Visual2. Cash has immediacy
3. Understand and use Walk Away power4. Shut up5. That’s not good enough6. Good guy, bad guy7. If I take away
Page 122 to 124Second Key – You must have patienceDon’t get married to a purchaseThird key – Know where to find deals.Trade something of value, goods or just
your servicesPlaces to find great deals:
IndividualsEstate SalesPublic Auctions
CouponsWhy?
Great dealsFree Stuff
TypesManufacturer = from company
You give to store, they get money + $.08 back
Store = from storeDouble coupons = store gives double value
If item is on sale + coupon can = FREE
MoreRebates:
Send in data = get money backIf on sale and coupon, could get more back
then spentCatalina
In store dispenser Reward Programs
Kroger Plus Card, automatic off & couponPlus = free stuffNegative = Time
How toThe “Coupon Basics”
Organize couponsBooksWatch adsBoxes of old adsElectronic couponsObsessiveMultiple trips / transactionsCheck store coupon Check item fits coupon
Sites to useCouponmom.comCoupons.comSmartsource.comRedplum.comHouseparty.comBargainstobounty.comMoneysavingmom.comGroupon.comBooks: textsbooksrus.com, half.com
More Places to Find Great Deals5. Garage Sales6. Repo Lot7. Flea Markets8. Refunding9. Foreclosures10. Pawn Shops11. Online Auctions12. Classified13. Consignment Sales – Buy & Sell14. Conventions
Just Remember:How they get youImpulse purchases
Put items you would not normally buy but want in highly visible areas
Steal of deals – buy stuff you do not needAdvertisement Strategies Marketing
LIVE on deals
ALTERNATIVE ACTIVITY
What you will do On paper 1: Write down the name of a product that would
be difficult to get teenagers to buy Put in product box
On paper 2 & 3: Write down 2 magazines you read regularly Put in box marked “girls” or “boys”
Groups of 3 or 4Will be given marketing scenario and pick 2 product slips
and decide which you will useIf will be marketed to girls or boy, pick magazine to put ad
in from “girls” or “boys” magazine boxIn ___ minutes come up with print ad campaign based on
your scenario to introduce advertise your productWill be introducing campaign to the class
Wrap-Up activity1. Which strategy did your group use?2. Which of the campaigns presented was
the most respectful to teenagers?3. Did any reinforce traditional gender
roles?4. Which would be most effective in the real
world? Why?5. If you turned your idea into a TV
commercial, what kind of music and effects could you use to hype the product?
Remember Advertising sets us up to feel dissatisfied - even if
we think we have everything we need, ads will still try to convince us that there is something else we need.
Advertisers try to show us how much more satisfied, popular, happy, hip, attractive, sexy, fun and in control we would be if we had their product.
Fashion and trends are always changing so that we must continually spend money to be current.
Advertising stresses competition and status versus feeling good about being who you are and accepting others for who they are.