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
Book – Complete page 66 Caveat Emptor = Buyer Beware Companies compete for your Money Personal selling Financing as a marketing tool 88% of 90 days same as cash TV, Radio, Internet Product Positioning
Name the Font – TV, Movie, Product You TubeHouse, M.D. Wall-E M*A*S*H SnickersWarcraftGuitar HeroLord of the Rings Mythbusters KissESPN Twitter Amazon Breaking BadIndiana JonesTron SimpsonsIkeaSkype Harry Potter DexterKraftTwilightSEGA
Page 68 & 69 Significant purchase is over $300 Physiological changes when making significant purchases His name is immaturity Can spend more than you make Must develop power over purchases 1. Wait overnight 2. Consider your buying motives, no amount = contentment 3. Never buy anything you do not understand 4. Consider the ‘opportunity cost’ 5. Seek wise Counsel
Short Quiz 1. What is Puffing or Puffery?PuffingPuffery 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 legal A. Bait and Switch B. Phony contests C. Infomercials C. Lets watch
Laws you should know Door to door sales 3 days to cancel if sign contract at location other than sales floor Mail Order Must 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 Law 1. Offer and Acceptance Must be given offer and must accept 2. Genuine Assent Based on truth without extra pressure 3. Consideration Both parties must receive something of value 4. Legality Must be of something that is legal 5. 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 happen Cease and desist orders Civil Penalties Corrective advertisements
Illegal Tactics 1: Illegal Advertisement Bait and Switch Advertise wanted item for low price Only expensive items at the store or push by sales to buy the more expensive item To getaway with it use small print: Limited available per store Only certain models No rain checks Certain requirement to get low price (Active military) False and Misleading Advertisement
Illegal Tactics: Deceptive Sales Practice Tie In Sales Get deal if you buy another product you do not want Maintaining or Creating a Monopoly Setting Prices / Price Fixing Agreements to restrict Advertisement Restraints on other business practices
Chapter 8, page 119 BARGAIN SHOPPING
Page 121 & 122 Misrepresented – Harm – Win/Win First key: Negotiate everything Don’t be afraid to ask 7 Rules of Negotiating: 1. Tell the truth 2. Use the power of cash 1. Cash is Emotional & Visual 2. Cash has immediacy 3. Understand and use Walk Away power 4. Shut up 5. That’s not good enough 6. Good guy, bad guy 7. If I take away
Page 122 to 124 Second Key – You must have patience Don’t get married to a purchase Third key – Know where to find deals. Trade something of value, goods or just your services Trade Places to find great deals: Individuals Estate Sales Estate Public Auctions
Coupons Why? Great deals Free Stuff Types Manufacturer = from company You give to store, they get money + $.08 back Store = from store Double coupons = store gives double value If item is on sale + coupon can = FREE
More Rebates: Send in data = get money back If on sale and coupon, could get more back then spent Catalina In store dispenser Reward Programs Kroger Plus Card, automatic off & coupon Plus = free stuff Negative = TimeTime
How to The “Coupon Basics” Organize coupons Books Watch ads Boxes of old ads Electronic coupons Obsessive Multiple trips / transactions Check store coupon Check item fits coupon
Sites to use Couponmom.com Coupons.com Smartsource.com Redplum.com Houseparty.com Bargainstobounty.com Moneysavingmom.com Groupon.com Books: textsbooksrus.com, half.com
More Places to Find Great Deals 5. Garage Sales 6. Repo Lot 7. Flea Markets 8. Refunding 9. Foreclosures 10. Pawn Shops 11. Online Auctions 12. Classified 13. Consignment Sales – Buy & Sell 14. Conventions
Just Remember: How they get you Impulse purchases Put items you would not normally buy but want in highly visible areas Steal of deals – buy stuff you do not need Advertisement Strategies Marketing LIVE on deals
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 4 Will be given marketing scenario and pick 2 product slips and decide which you will use If will be marketed to girls or boy, pick magazine to put ad in from “girls” or “boys” magazine box In ___ minutes come up with print ad campaign based on your scenario to introduce advertise your product Will be introducing campaign to the class
Wrap-Up activity 1. 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.