Protecting our wallets from our gullible minds CONSUMER AWARENESS CHAPTER 6, PAGE 129.
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Transcript of Protecting our wallets from our gullible minds CONSUMER AWARENESS CHAPTER 6, PAGE 129.
Protecting our wallets from our gullible minds
CONSUMER AWARENESSCHAPTER 6, PAGE 129
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 129Caveat Emptor = Buyer BewareWe want to live like no one else so later
you can live like no one elseSacrifice to win and want to enjoy the
winningGood salesman know how to sell and is
professional, which can make it funCompanies compete for your MoneyCompetition is fierce for your dollar
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 132 and 133When you are aware of techniques, you
are more wise.4 common marketing strategies:
Personal selling. People learn to talk to you and to assist in you buying stuff
Financing is when they use money as a tool so you do not think about the cost
Repetition to sell productsPositioning
PositioningBrand recognition adds value
Nike is betterColor mattersShelf positioning is boughtPackaging design is huge
Don’t worry but beware and be smart!
Page 135Significant purchase is over $300Physiological changes when making significant
purchases: Buyer’s remorse is when you regretAll have spoiled kid inside, his name is
immaturity With spending devise a plan and follow it Big purchases should be done by saving up
and paying cash
Opportunity Cost: Section 3, page 136Must develop power over purchases
1. Wait overnight2. Consider your buying motives, no amount =
contentment. Sometimes happiness and fun are confused.
3. Never buy anything you do not understand4. Consider the ‘opportunity cost’5. Seek wise Counsel
Short Quiz
1. 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 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 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 7, page 145
BARGAIN SHOPPING
There is a difference in being frugal vs. cheap
Section 1: Bargain ShoppingMisrepresented – 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 guy is a sale technique 7. If I take away
Page 151Second 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 Sales and Public Auctions
Coupons
Why?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
More
Rebates:Send in data = get money back
If on sale and coupon, could get more back then spent
CatalinaIn store dispenser
Reward ProgramsKroger Plus Card, automatic off &
couponPlus = free stuffNegative = Time
How to
The “Coupon Basics”Organize coupons
BooksWatch adsBoxes of old adsElectronic couponsObsessiveMultiple trips / transactionsCheck store coupon Check item fits coupon
Sites to useSmartphone scanner
UPC: Universal Product Code (Wrigley Gum the 1st) Stores or Items siteCouponmom.comCoupons.comSmartsource.comBargainstobounty.comMoneysavingmom.comHouseparty.comGroupon.comBooks: textsbooksrus.com, half.com
More Places to Find Great Deals
4. Garage Sales5. Repo Lot6. Flea Markets7. Refunds and Rebates 8. Foreclosures9. Pawn Shops10. Online Auctions11. Classified12. Consignment Sales – Buy & Sell13. Conventions
Just Remember:How they get youImpulse purchases
Put items you would not normally buy but want in highly visible areas
Store Cash = get you to spend more today and get you back in the store to spend more next week
Steal of deals – buy stuff you do not needAdvertisement Strategies Marketing Crazy Couponing
LIVE on deals &Live within your means
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 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.